The Determinants of Investment Are

question 57

Multiple Choice

The determinants of investment are

• A) the marginal propensity to invest and the savings rate.
• B) the level of gross domestic product and the marginal propensity to spend.
• C) the profit rate and the equilibrium rate.
• D) business expectations and the Dow Jones Industrial Average.
• E) the interest rate and the expected rate of return from capital.

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Definitions:

Export Promotion

Strategies and policies designed to increase the amount of goods and services sold to foreign countries.

Domestic Market

The domestic market pertains to the commercial activities and transactions within a country's borders, excluding international trade.

Technological Base

Refers to the foundation of technology, including the knowledge, tools, and processes that support the economic and industrial development of a country or region.

Foreign Aid

Financial or material assistance provided by one country to another, often for developmental purposes.