« previous next »

Author Question: What are the major factors that determine investment, and what impact does each have on aggregate ... (Read 23 times)

jeatrice

  • Hero Member
  • *****
  • Posts: 543
on: Jun 30, 2018
What are the major factors that determine investment, and what impact does each have on aggregate demand?

Question 2

Which of the following is true of fiscal policy before the Great Depression of the 1930s?
 a. Fiscal policy was made at the federal level.
  b. Policies associated with national defense were made at the state level.
  c. Environmental degradation and education were the focus areas of the federal government while other areas of government policy were dealt by individual states.
  d. The federal budget was determined mostly by economists and not by politicians.
  e. National defense and foreign trade were the focus areas of the federal government while other areas of government policy were dealt by individual states.


flexer1n1

  • Sr. Member
  • ****
  • Posts: 373
Reply #1 on: Jun 30, 2018
Answer to Question 1

Important factors that determine investment behavior are optimism, profits, interest rates, capital stock utilization rates, and inventories. Changes that increase investment lead to an increase in aggregate demand. Changes that decrease investment expenditures decrease aggregate demand.

Answer to Question 2

e


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

A plot of trophic diversity across the major groups of organisms shows highest trophic diversity amo A plot of trophic diversity across the major groups of organisms shows highest trophic diversity amo
Posterior view of the Heart, outlining the major arteries Posterior view of the Heart, outlining the major arteries
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Summary of biosynthetic routes to the major prostaglandins and thromboxane A2 Summary of biosynthetic routes to the major prostaglandins and thromboxane A2
How to determine the interquartile range How to determine the interquartile range
Algebraically determine the x intercept of the exponential function Algebraically determine the x intercept of the exponential function
Video: Renal Failure

For a complete list of videos, visit our video library