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:

Bushel of Wheat

A unit of measure for volumes of dry commodities, typically used in agriculture for wheat, equivalent to approximately 35.24 liters.

Vertical Axis

In a graph or chart, the y-axis, which is perpendicular to the horizontal axis and usually represents the dependent variable in an equation or data set.

Market for Coffee

The global or local marketplace in which coffee, as a commodity, is traded among buyers and sellers.

Intermediate Run

A period of time too long for some factors to remain fixed, allowing for adjustments in production but not long enough for all variables to be fully flexible.