* not completed

. An increase in investment is most likely to be caused by:

Lower interest rates correct incorrect

Expectations of lower national income correct incorrect

A decrease in the marginal propensity to consume correct incorrect

An increase in withdrawals correct incorrect

* not completed

. An outward shift in the Marginal Efficiency of Capital should:

Decrease consumption correct incorrect

Increase aggregate demand correct incorrect

Reduce aggregate supply correct incorrect

Slow economic growth correct incorrect

* not completed

. An increase in interest rates:

Is likely to reduce savings correct incorrect

Is likely to reduce the external value of the currency correct incorrect

Leads to a shift in the MEC schedule correct incorrect

Leads to a movement along the MEC schedule correct incorrect

* not completed

. The accelerator assumes:

The marginal propensity to consume is constant correct incorrect

The economy is at full employment correct incorrect

There is a constant relationship between net investment and the rate of change of output correct incorrect

The multiplier is constant correct incorrect

* not completed

. Investment depends mainly on:

Past levels of income correct incorrect

Future expected profits correct incorrect

Present national income levels correct incorrect

Historic data correct incorrect

* not completed

. A profit-maximizing firm will invest up to the level of investment where:

The cost of borrowing equals the marginal efficiency of capital correct incorrect

The cost of borrowing is greater than the marginal efficiency of capital correct incorrect

The cost of borrowing is less than the marginal efficiency of capital correct incorrect

The cost of borrowing equals the marginal propensity to consume correct incorrect

* not completed

. Investment is:

An injection that increases aggregate demand correct incorrect

A withdrawal that increases aggregate demand correct incorrect

An injection that decreases aggregate demand correct incorrect

A withdrawal that decreases aggregate demand correct incorrect

* not completed

. Investment is an unstable element of aggregate demand because is depends heavily on:

Government policy correct incorrect

Expectations correct incorrect

National income correct incorrect

Historic trends correct incorrect

* not completed

. If an increase in investment leads to a bigger increase in national income this is called the:

Accelerator correct incorrect

Aggregate demand correct incorrect

Monetarism correct incorrect

Multiplier correct incorrect

* not completed

. The difference between gross investment and net investment is:

Depreciation correct incorrect

Acceleration correct incorrect

Deceleration correct incorrect

Capital investment correct incorrect