Two Basic Determinants of Investment Spending Are

question 41

Multiple Choice

Two basic determinants of investment spending are:

• A) Consumer spending and government spending
• B) Expected returns and real interest rates
• C) General price level and the level of output
• D) Domestic trade and international trade

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Definitions:

Social Value

The importance or worth of something to society, considering factors beyond mere economic gains, like environmental sustainability and social equity.

Private Cost

The cost that is borne by the individual who creates it, as opposed to society or others.

College Degree

A qualification awarded to students upon successful completion of a course of study in higher education, often representing a specific level of expertise in a particular field.

Social Optimum

The ideal state of allocation of resources where social welfare is maximized, taking into account all costs and benefits to society.