In the Simple Macro Model,desired Investment Is Assumed to Be

question 65

Multiple Choice

In the simple macro model,desired investment is assumed to be autonomous with respect to national income.Which of the following will cause a shift of the investment function?
1) a decrease in interest rates
2) an increase in firms' optimism about the economy
3) an expectation of a downturn in future economic activity

• A)1 and 2
• B)2 and 3
• C)1 and 3
• D)1,2,and 3
• E)1 only

---

Definitions:

Unearned Revenue

An accounting term referring to money received for a product or service yet to be delivered or performed.

Customers Pay

This term refers to the action of clients or buyers giving money in exchange for goods or services.

Service

An intangible commodity that involves the provision of labor or expertise, rather than goods, for the benefit of a consumer.

Accounting Cycle

The sequence of procedures performed in accounting to process, record, and report financial transactions over a specific period.