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Revision:Investment Exam QuestionsTSR Wiki > Study Help > Subjects and Revision > Revision Notes > Economics > Investment Exam Questions June1995 Why does investment fluctuate so much? Can this be explained solely in terms of movements in interest rates? 1996
Can these two statements be reconciled? Does the government have other instruments through which top influence investment? 1997 Either: A. Can governments do anything to cause private sector investment to increase? Or: B. There can be no investment without savings therefore an increase in savings is good for investment. If savings increase consumption will fall and entrepreneurs will cut back their investment. Higher savings are therefore bad for investment. Discuss. 1998 Savings equal investment, therefore increasing savings increases investment. Is this correct? Explain your answer. 1999 no question 2000 Either: A. Should investors discount the prospective yields on a project using the market interest rate? Or: B. What is the paradox of thriftÂ’? Will an increase in national savings lead to an increase or a decrease in national income over time? (Why not also do: what is the relationship between Saving, consumption, and investment see also your A-Level essay & plan) September1994 Explain the mechanism by which a change in the rate of interest affects investment. 1995 Would a rise in government investment in infrastructure increase or decrease private sector investment? 1996 no question 1997 "It is investment in stocks that ensures that investment always equals savings but unplanned investment in stocks is evidence that the country is unlikely to be in equilibrium." Explain this statement. Explain why you agree or disagree with this statement. 1998 Savings equal investment. Therefore it makes no difference whether the government designs its policy to increase savings or to increase investment. Discuss. Comments |
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