Explain THREE (3) factors that can influence investment in an economy.

Q: What determines the slope of a consumption function?

A: Consumption, represented as expenditure for utility acquirement. Consumption involves the ultimate…

Q: Explain the difference between the stock variable and a flow variable in economics with one example…

A: According to the given question While analysing in general the economic problems the economics uses…

Q: Increases in investment spending cause interest rates to increase. a. Ohouseholds will voluntarily…

A: True, because when the interest rate in the economy increases, the opportunity cost of consumption…

Q: W Y. L K M N. Refer to Figure 23-1. Which of the following pairs correctly identify W and Y? a.…

A: The circular flow is a visual model that shows how money flows through the market among households…

Q: Which of the following would be classified as private investment?   a. An individual’s purchase of…

A: Private investment: - It means the purchase of capital assets by private businesses, private…

Q: ate the three possible relationships between production, income and spending in macroeconomic theory

A: Macroeconomics is the study of aggregate phenomena including economic growth, business cycles,…

Q: State 3 characteristic of the consumption function ?

A: Consumption function represents the functional relationship between total consumption and gross…

Q: Discuss. in a general way, how markets would determine the combination of consumer goods and capital…

A: Introduction: A  market could be a location where individuals move to exchange product and services.…

Q: Classify each of the following based on the macroeconomic definitions of saving and investment.…

A: Saving Investment   Neha borrows money to build a new lab for her engineering firm. no…

Q: How does investment as defined by economists differ from investment as defifined by the general…

A: Investment in capital stocks, such as buildings, machinery and infrastructure, is an economic…

Q: Societies choose what share of their resources to devote to consumption and what share to devote to…

A: a. Describe some forms of private spending that represent consumption and some forms that represent…

Q: Explain why the saving curve slopes upward and the investment curve slopes downward in the…

A: A plan to invest entails committing additional money to the production of goods and services.…

Q: Your answer: 1 ​​​​​​Countries with a high gross domestic product are low consumers of energy. 2…

A: There is direct relationship in energy consumption and gross domestic product.

Q: Explain, and show the change in the diagram below, how the increase in net investment will affect…

A: Production possibility curve shows the combination of two goods that can be produced with the given…

Q: Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the investment of…

A: Equilibrium is the state in which market supply and demand balance each other, and as a result…

Q: Other things being constant, what will be the effect of each of the following on consumption and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following is considered investment by economists? O I purchased a $10,000 Treasury bond…

A: Investment in economics is the purchase of capital goods or goods that stimulate production of other…

Q: What does it mean when talking about full income and price when considering the household…

A: The utility-maximizing choice on the initial budget constraint is M. The dashed horizontal and…

Q: When savings equals investment, reducing savings and increasing consumption is especially effective…

A: true there are three things to consider about relationship between savings and economic cycle  1…

Q: True or False: To economists, investment means buying stocks and bonds. True False

A: There exists a difference between how an economist views investment and how a non-economists views…

Q: Is the purchase of equipment or machinery a part of consumption or investment?

A: Economics is the study of how the scarce resources of society are exploited. Economics is a social…

Q: Briefly explain the accelerator model of investment

A: In macroeconomics, the production and allocation decisions regarding an entire country or economy…

Q: Is the purchase of equipment or machinery a part of consumption or investment? Why?

A: The concept of allocation of money with having an expectation in the future of a positive return or…

Q: Explain The difference between induced and autonomous investment in economics..

A: According to the given question Investment in economics is considered as a asset or actually an item…

Q: "In the financial sector and in the economy, commercial banks play an important part. As a core…

A: The financial sector assumes a significant part in the monetary framework and the economy. As a…

Q: which of the following occurs when disposable income is zero? Select one: a. consumption is negative…

A: Disposable Income is the left over income after the payment of taxes and miscellaneous government…

Q: consume

A: The question concern the paradox of thrift. If all the people of the economy increase the proportion…

Q: What are the two approaches to determine the equilibrium level of income in an economy?

A: According to the given question In simple words we can say that equilibrium level income is…

Q: What is the value of autonomous consumption?

A: Consumption function: C = c + MPC * Y Where C is consumption c is autonomous consumption. It is the…

Q: With the help of consumption function C=10+0.5Y, calculate savings at an income level of $500

A: The consumer spending depends upon various factors such as income level, interest rate, age,…

Q: What are the nonincome determinants of Consumption and Savings?

A: Consumption refers to the act of consuming goods and services to satisfy the wants. It is an…

Q: Suppose that society decided to reduce consumption and increase investment. Briefly explain what…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: When does the optimal investment schedule shift?

A: The ideal hazardous investment mix is regardless of wealth, non-capital income, age, and eagerness…

Q: Which of the following would likely increase private saving?   a. both expansion of means testing…

A: Means test determines where the household is eligible to receive benefits from including different…

Q: Explain the difference between saving and investment as defined by a macroeconomist

A: According to macroeconomist, Savings refer to excess of income over consumption. This implies…

Q: true/false explain When savings equals investment, reducing savings and increasing consumption is…

A: During economic recession people will save more and it basically cause reduction in aggregate demand…

Q: Determine if the following would be counted in GDP and identify the category under which it would…

A: GDP by expenditure method = Household consumption expenditure + Gross investment + Government…

Q: Please explain three perspectives related to the consumption.

A: Consumption: Consumption of a commodity is a basic act that is being carried out by all of us…

Q: Consider the following investment opportunity:

A: Since the question you have posted consists of multiple parts, we will answer the first part for…

Q: to people who make over $50,000 and are permanent. Will you work more or less when marginal tax…

A:

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.