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Investment is ?

A. The purchase of goods and services

B. The purchase of capital equipment and structures

C. When we place our saving in the bank

D. The purchase of stocks and bonds

Related Questions on Stocks & Surplus Economics Mcqs

An increase in the budget surplus ?

A. Shifts the supply of loanable funds to the left and increase the real interest rate

B. Shift the supply of loanable funds to the right and reduces the real interest rate.

C. Shifts the demand for loanable funds to the right and increases the real interest rate.

D. Shifts the demand for loanable funds to the left and reduces the real interest rate

An increase in the budget deficit will ?

A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment

B. lower the real interest rate and increase the quantity of loaable funds demanded for investment

C. raise the real interest rate and increase the quantity of loandable funds demanded for investment

D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment

Which of the following sets of government policies is the most growth oriented ?

A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit

B. Increase tax on the returns to saving Provide investment tax credits and increase the deficit

C. Increase tax on the returns to saving Provide investment tax credits and lower the deficit

D. Lower taxes on the returns to saving Provide investment tax credits and increase the deficit