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:

Privity of Contract

Privity of contract is a legal principle that restricts the rights or duties under a contract to the parties who originally agreed to it, preventing third parties from enforcing the contract terms.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, presented in a structured manner.

Section 11

A provision in the 1933 Securities Act that holds issuers liable for registration statement misrepresentations or omissions of material facts to investors.

Untrue Material Fact

Incorrect or misleading information that is substantial and significant enough to influence a decision-maker's action, particularly in contexts like securities transactions.