The Planned Investment Function Shows That

question 87

Multiple Choice

The planned investment function shows that

• A) real gross investment falls as real NNP increases.
• B) a negative relationship exists between the level of planned investment and the interest rate.
• C) a positive relationship exists between planned consumption and planned investment.
• D) at higher levels of planned saving, planned investment increases.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Year-End Closing Entries

Journal entries made at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses to the income summary.

Owner's Drawings

The withdrawal of business assets by the owner for personal use, which reduces the equity of the owner in the business.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain expenses.