9. What is the impact of costly investment on consumption in the long run? (a) It...
9. What is the impact of costly investment on consumption in the long run?
(a) It decreases consumption.
(b) It increases consumption.
(c) It may decrease or increase consumption.
(d) It has no impact on consumption.
10. What is the impact of costly investment on external wealth in the long run?
(a) It decreases external wealth.
(b) It increases external wealth.
(c) It may decrease or increase external wealth.
(d) It has no impact on external wealth.
Homework Answers
9) (b) (b) It increases consumption.
As a GDP component from the current domestic expenditure side, investment has an immediate impact on GDP. An increase of consumption rises GDP by the same amount, other things equal.
10) (c) It may decrease or increase external wealth.
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9. What is the impact of costly investment on consumption in the
long run?
(a) It...
10. What is the impact of costly investment on external wealth in the long run? (a)...
10. What is the impact of costly investment on external wealth in the long run? (a) It decreases external wealth. (b) It increases external wealth. (c) It may decrease or increase external wealth. (d) It has no impact on external wealth.
8. What is the impact of costly investment on current account in the long run? (a)...
8. What is the impact of costly investment on current account in the long run? (a) It decreases current account. (b) It increases current account. (c) It may decrease or increase current account. (d) It has no impact on current account.
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