Which type of investment is called a mixed investment?

Q: According to the table, in which year did buyers of six-month Treasury bills receive the highest…

A: According to Fisher's Equation, Real interest rate= (Nominal interest rate - Inflation).

Q: True/False  If the real rate of return on investment is higher in the US than in Canada, capital…

A: Capital flows refers to the movement of money across the countries. When capital flow in th.e…

Q: Define the concept of rate of return on investment?

A: Rate of return on investment measures the net gain or loss of an investment over a period of time.…

Q: Explain Net present value with the formula.

A: Net Present Value Net present value basically refers to the difference between the current worth of…

Q: What is Paid-in capital?

A: In exchange for stock, the shareholder gives a full amount of cash or asset to the company is known…

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: Looking at business fixed investment, elaborate on why investment is negatively related to the…

A: Investments are negatively related rate of interest.

Q: What does the net investment test indicate?

A: Net investment is the net amount of money a business spends on capital assets, minus the…

Q: Give at least three examples of how savings can be channeled into productive investment. Why is…

A: Examples of how savings can be channeled into productive investment: When households save their…

Q: Explain the term capital in depth

A: Companies employ capital to fund the continuous production of goods and services in order to…

Q: When is a project not a pure investment project?

A: Investment: When a fund is used to earn additional income or fund is used to grow its value then…

Q: "Capital is a flow and income is a stock" True/False

A: # If a quantity is being measured at a perticular point of time then it is stock and if a quantity…

Q: Describe the Net present-worth with an example?

A: Present value is defined as the current value of the amount of money that a person will receive in…

Q: Describe nonsimple investment?

A: Non simple investment is a type of investment where more than one sign change occurs in the net cash…

Q: What is Risk-free real return?

A: The gain or loss of an initial investment over a given time period is referred as rate of return.…

Q: Why would planned investments might be different than actual investments? And what does it mean?

A: A planned investment is the total amount of money that a company or person plans to spend over a set…

Q: What is Capital expenditure?

A: Capital expenditure refers to expenditure made by the firms in tangible assets such as land,…

Q: Describe the following term in your own words.  Q.2.1 Investment

A: Economic Investments: Economic growth is linked to investments within a country or nation. Economic…

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: At 1% interest rate, how much should you invest today to be able to withdraw ₱ 3,053 annually for 8…

A: 1% interest rate is given monthly , where he withdraw 3053 annually for 8years . And payment is done…

Q: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

A: If Net Investment = 0 in a given year, this indicates that we have neither lost nor gained capital.…

Q: What are three sources of saving that can be used to fnance investment?

A: What is saving To economists, saving is consuming less in present to consume more in the future. It…

Q: What is the Net-investment test?

A: Net- investment measures the company's assets and investment like property, software, plants and…

Q: A society will put more investment on consumer goods than capital goods if it values more of present…

A: Consumerism is the possibility that expanding the utilization of goods and administrations bought in…

Q: Explain and compare the following terms: Saving intensity and break-even investment intensity.

A: In economics, saving is defined as the process a specific percentage of the annual income, which is…

Q: Describe the Investment Decision for a Simple Investment?

A: A simple investment can be made on the basis of various methods like the payback period, return on…

Q: Differentiate the Direct Investment versus Indirect Investments.

A: The economies tend to work upon the basis of the activities which are done by various entities.…

Q: Why is investment is a better option than savings?

A: An individual’s income after consumption is called savings. It means money is held in a secure…

Q: What is the break even investment

A: The relationship that exists between fixed costs, variable costs, and returns can be studied by…

Q: Consider the results in Table 3. What is the predicted home size of a household composed of 5…

A: The predicted home size of a household composed of 5 members, renting, and with annual net income…

Q: Define the term short-term investments?

A: The investment is a practice of investing money with the expectation of some future benefit or…

Q: Define the term Return on Investment?

A: Return on investment measures the performance which is used to evaluate the efficiency of an…

Q: Looking at business fixed investment, explain why investment is negatively related to the interest…

A: An asset or object purchased with the intention of producing income or appreciation is referred to…

Q: In saving drepped sharply in the economy, what would be likely to happen to investiment? Why

A: In equilibrium, planned saving equals planned investment.

Q: Does the Broader Diversification Increase Expected Return?

A: Diversification is investing money in a wide range of investments, not in a single investment. It is…

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: investment spending in eonomic terms, includes spending toward physical capital, machinery, new…

A: Investment spending in economic terms is consumption in various profitable purposes such as new…

Q: Explain three types of capital receipts in an given economy?

A: In simple words we can say that the capital receipts are known as that receipts in which the…

Q: What do you expect will happen to investment demand in this country?

A: The markets of a nation are considered to be the integral part of the growth of the nation. The…

Q: Describe the process of Calculating Present Value?

A: PV formula  Present value = Future value/ (1+r)n r= rate of return n = number of periods

Q: Which type of project is called a pure investment project?

A: There are two different types of investment projects - pure investment project and mixed investment…

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.