Advertisements
Advertisements
Question
Planned investment expenditure (I) by firms mainly depends on:
Options
Disposable income
Government transfer payments
Net exports
The rate of interest
MCQ
Advertisements
Solution
Investment (I) is the planned expenditure by firms on capital goods, inventories and residential houses, and it mainly depends on the rate of interest. Consumption, in contrast, mainly depends on disposable income.
shaalaa.com
Is there an error in this question or solution?
