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

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Definitions:

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International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Current-rate Method

A method used in financial reporting to convert the financial statements of a foreign subsidiary to the parent company's currency by applying the current exchange rate.

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High-quality traditional British woven fabrics known for their distinctive patterns, durability, and use in classic clothing.

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