The Two Important Determinants of Investment According to Keynes Are

question 19

Multiple Choice

The two important determinants of investment according to Keynes are:

• A)interest rate and marginal efficiency of capital
• B)saving and interest rate
• C)interest rate and consumption
• D)none of these

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Definitions:

Increase in Demand

A shift of the demand curve to the right, indicating that consumers are willing and able to purchase more of a good or service at every price.

Supply Curve

A pictorial display indicating how the price of an item affects the quantity of the item sellers are eager to sell.

Cost of Production

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overhead costs.

Quantity Demanded

Quantity demanded refers to the total amount of a good or service consumers are willing to purchase at a specific price point, at a given time.