12>>>The accelerator principle is given as the function I = a Y. If accelerator in the economy is 10, and output moved from $50 million to $75 million after net investment expenditure, calculate investment:

Select one:

a.25 million

b.40 million

c.250 million

d.2.5 million

13>>>In macroeconomics, investment refers to:

Select one:

a.savings.

b.the purchase of new capital.

c.the purchase of stocks, bonds, or investment in mutual funds.

d.investments in imported commodities

14>> Which of the following factors does not affect the level of private investment?

Select one:

a.Consumer confidence

b.Political stability

c.Growth of demand

d.The level of wealth

15>.3. In Keynesian income determination theory, which of the following is NOT TRUE?

Select one:

a.Net exports is positively related to output

b.In equilibrium, planned expenditure is equal to actual expenditure

c.Imports are positively related to output

d.mpc = 1 - mps

16>>The rise in investment due to decreased government borrowing is called

Select one:

a.the crowding out effect

b.the crowding in effect

c.the multiplier effect

d.the deficit effect

17>>>A key determinant of exports is:

Select one:

a.The number of people in work

b.The role of the central bank

c.The industrial base of the economy

d.The political beliefs of the government