Fixed Investment Is

question 440

Multiple Choice

Fixed investment is

• A) when a firm adds to its inventories of goods.
• B) when a firm accumulates profits.
• C) dissavings.
• D) an expenditure by firms on new machines that are expected to produce income in the future.

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Definitions:

Drive

An intense internal force that motivates behavior.

Homeostasis

The tendency to maintain equilibrium by adjusting physiological or psychological processes.

Primary Drives

Basic, innate drives that motivate behavior essential for survival, such as hunger, thirst, and avoidance of pain.

Hull

An American psychologist who developed the drive-reduction theory, emphasizing the role of biological needs in motivation and behavior.