Q: A tax law change that successfully encourages saving will interest rates, which leads to investment…
A: Equilibrium in the loanable funds market occurs at the intersection of demand and supply curves of…
Q: Which of the following should NOT be considered as part of fixed investment? 1. Toyota buys a new…
A: According to the economist investment is such a concept which focuses on the goods production in…
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: 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: Explain the term capital in depth
A: Companies employ capital to fund the continuous production of goods and services in order to…
Q: factors that contribute to the successful investment
A: Investment means Balancing risks, between reward and opportunity cost - knowing the right balance…
Q: If private investment increases by $1, real GDP increases by $4. What do we call this in economics?…
A: Real GDP is calculated as a sum of consumption, investment and government purchases in the closed…
Q: If the business community becomes more optimisticabout the profitability of capital, the…
A: Behavioral optimism refers to the positive attitude of gaining positive outcome from the investment…
Q: Using a flowchart (you can search or de your own) illustrate the stages of capital expenditure cycle…
A: Capital budgeting is a process of evaluation of investments and also the huge expenses being…
Q: What are the keyword that contrast savings and investment?
A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…
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: How do investors spend in economy?
A: Any entity or person who purchases capital having an expectation of receiving financial returns in…
Q: what is relationship between saving , capital formation and consuption ?
A: Capital formation is given by the amount of investment. In a closed economy without Government…
Q: se the following diagram to answer this question he accompanying graph shows the market for loanable…
A: The equilibrium interest rate is determined where the demand and supply of loanable funds are equal.
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: Which type of investment is called a mixed investment?
A: Investment refers to the purchase of an asset that entails greater payoff in the form of increased…
Q: Distinguish between investment and capital?
A: Distinguish between investment and capital? Answer: Capital refers to the sources of funds, it may…
Q: importance of stock market
A: Stock market is a collection of market where buying and selling of stocks happen in an economy using…
Q: What are the implications of inequality between saving and investment in an economy?
A: Saving: It refers to the amount of money that is not being used by the people. The people will save…
Q: What is the relationship; remember how economist talk about relationships, between the level of…
A: The equilibrium of the national income including the real GDP and the price level would be…
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: Why is savings equal to investment
A: Saving is the portion is income that is not used in consumption and thus does not include in income…
Q: Discuss the overall purpose people have for investing. Define investment
A: Investment: Investment is the commitment of funds for some specific period of time, in return will…
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: all else equal, what does a lower interest rate mean for firms? what does a lower interest rate…
A: Interest rate positively related with the savings and negatively related with the investment. When…
Q: Explain THREE (3) factors that can influence investment in an economy.
A: Investment is the process of adding to the stock of capital assets with the expectation of getting a…
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: Explain/Discuss Three ways that a reduced rate of interest influences real capital investment.
A: Real capital investment is the sum of money which is given to a company to achieve it business…
Q: Laurasia has $-300 billion in Public Savings and $ 900 billion in Private Savings. What is…
A: The national income(Y) identity is Y=C+I+G Y:National income C:Consumption expenditure I:Investment…
Q: If net personal taxes rise, what happens to private saving ? Public saving ?
A: In an economy, taxes refers to the expenditure by the people and revenue of the government because…
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: Describe the simple investment?
A: Investment refers to buying financial assets like shares and bonds to earn interest rates. Rate of…
Q: What group of people benefits from a higher interest rate? Explain how they benefit
A: Interest is the opportunity cost of holding money.
Q: summarize how savers, financial institutions and borrowers interact to help the economy to create…
A: Most of the amount of capital within the economy is generated by banks in the form of bank deposits.…
Q: Describe the investment decisions made in the private sector?
A: Meaning of Investment Decision made in Private Sector Investment Decision in Private Sector means…
Q: How is capital transferredbetween savers and borrowers?
A: A financial institution is a channel that transfers capital between borrowers and savers. They only…
Q: 1. Would you consider spending to make a school or an office building earthquake-proof a good…
A: 1 In order to create the earthquake resistant in the building and the schools is to build an…
Q: What is the ratio of savings to disposable income called? a) MPS B) cY NS) APS D) MRI…
A: When people earn income they will have disposable income after paying taxes and they use it in two…
Q: If savings are at $1300 and income is worth $2200, what would the value of consumption be
A: According to neoclassical economists, ingestion serves as the ultimate goal of economic activity; as…
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
What are the different types of investment
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Solved in 2 steps
- Give reasons which you think are the most important reasons for saving regularly.Dennis is planning to invest his money to earn more. He is willing to take a little risk by buying incomeearning assets to help him earn more. However, he wanted to make sure that when he needs the money he invested, he will be able to get part of it immediately. What type of investment would you advise Dennis to buy? Why?What will the value of spending be if you had $1300 in savings and $2250 in income?