Investment Spending ________

question 67

Multiple Choice

Investment spending ________.

• A)is comprised of fixed and inventory investment
• B)is negatively related to the real interest rate
• C)is heavily influenced by what Keynes coined as "animal spirits"
• D)all of the above
• E)none of the above

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Definitions:

Bond

A fixed income investment in which an investor loans money to an entity that borrows the funds for a defined period at a variable or fixed interest rate.

Premium

An amount paid in addition to a standard price or rate; in insurance, it's the amount paid for coverage.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to repay.