MACROECONOMICS (LL)
21st Edition
ISBN: 9781260186949
Author: McConnell
Publisher: MCG
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Question
Chapter 6, Problem 5DQ
To determine
Economic investment.
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Students have asked these similar questions
How does investment as defined by economists differ from investment as defifined by the general public? What would happen to the amount of investment made today if firms expected the future returns to such investment to be very low? What if firms expected future returns to be very high?
What would happen to the amount of economic investment made today if firms expect the future returns to such investment to be very low?
How does investment as defined by economists differ from investment as defined by the general public?
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- Why can the Sunk costs-past costs not be changed by any future investment?arrow_forwardClassify each of the following based on the macroeconomic definitions of saving and investment.arrow_forwardAssume a country would like to increase investment by limiting consumption. What would be the point of a policy like that? What would be the impact on the economy? Who would benefit? Who would lose out?arrow_forward
- Which of the following is an example of economic investment? ABC Corporation buys an a run-down farm from XYZ Corporation. XYZ Cement Corporation buys a new truck that increases delivery to customers. Michael Daily buys shares of stock in Intel Corporation. Carlos Montana buys U.S. savings bonds.arrow_forwardWhat happens to domestic investment as the real interest rate rises? Explain your answer.arrow_forwardTrue or False... When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.arrow_forward
- Which would be considered an investment according to economists? The purchase of newly-issued shares of stock in Microsoft The construction of a new computer chip factory by Intel The purchase of shares of stock by Fidelity, a mutual fund company The sale of government bonds by the nation's central bankarrow_forwardWhat happens when firms and workers underestimate future prices in the economy. On what would happen to actual output as opposed to the expected potential output.arrow_forward
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