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:

Cost Of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Receivables Turnover

A financial metric that measures how efficiently a company collects cash from its customers by dividing net credit sales by average accounts receivable.

Collection Period

The average number of days it takes for a business to receive payments from its customers after a sale has been made.

Accounts Receivable

Represents the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.