A Decrease in Planned Investment Causes

question 236

Multiple Choice

A decrease in planned investment causes

• A) output to increase.
• B) output to decrease, but by a smaller amount than the decrease in investment.
• C) output to decrease, but by a larger amount than the decrease in investment.
• D) output to decrease by an amount equal to the decrease in investment.

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Definitions:

Capital Amount

The total value of all assets of a company or individual, before deductions, including cash and assets that can be used to produce income.

Priority Of Payment

The order in which debts or claims from creditors are paid in the event of liquidation.

Deferred Creditors

Creditors that hold certain debts that are payable to the contributories of the company ahead of repayments of capital to those contributories.

Ordinary Unsecured Creditors

Creditors whose debts have no preferential treatment under the Corporations Act and are the last to be paid before funds are returned to contributories.