One of the Primary Determinants of Planned Real Investment Spending

question 133

Multiple Choice

One of the primary determinants of planned real investment spending is the

• A)expectation of future profits.
• B)rate of real consumption spending.
• C)rate of real government spending.
• D)rate of real saving.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Deferral

A financial term referring to the postponement of the recognition of certain revenues or expenses to a later accounting period.