Typically,the Most Important Determinant of Private Investment in an Economy

question 54

Multiple Choice

Typically,the most important determinant of private investment in an economy is

• A)the inflow of foreign investment.
• B)the size of the capital account surplus.
• C)the size of the current account deficit.
• D)the amount of domestic savings.

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Definitions:

Crude Quantity Theory

A basic concept in economics that suggests the amount of money in circulation determines the level of economic activity, affecting prices and inflation.

M Rises

An increase in the money supply in an economy, which can affect inflation and interest rates.

Q Falls

Indicates a decrease in the quantity demanded or supplied of a good or service, often in response to changes in price, income, or other factors.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given period.