Finance Homework
Name: Mary Rafel P, Abadies Rating: ___________
Course/Year: BSAc-1 Date: August 6, 2013
6.1 IDENTIFICATION Capital stock 1. The aggregate production capacity of existing capital goods in the economy. Zero or net change 2. Means a constant level in both the capital stock and output. Investments 3. Adjusts the capital stocks to maintain and even increase production and the level of the economic activities. Savings 4. The unspent portion of income during the period intended for spending.
Simple savings equation 5. Serves to emphasize the inverse relationship between the level of outflow and the amount of income generated in circular flow. Investment demand 6. Is inversely proportional to the interest rate level. Principle 7. States that the level of investment is a function of desired changes in the output. Joseph Shumpeter 8. Describes innovation as the introduction of an unfamiliar product and untested technology. Profit 9. The basic reason why businessman invests. Perceptive investors 10. Delves into technology changes, anticipates turning points in the business environment and decides the magnitude and type of investment one should make.
6.2 MULTIPLE CHOICE F 1. Interest rate A 2. Innovation H 3. Recession E 4. SEC B 5. BOI D 6. Multiplier I 7. MPC K 8. Consumption function J 9. Capital stock G 10. Profit
6.3 ESSAY
1. What are the Determinants of Saving? The determinants of savings are the price level which can affect expenditure and savings, the population growth which may change the level of savings depending on the well-being of the economy and the family income.
2. What are the Investment Demand Determinants? The investment demand determinants are the interest rate, the acceleration principle, innovations, profit and expectations.
3. What are
Course/Year: BSAc-1 Date: August 6, 2013
6.1 IDENTIFICATION Capital stock 1. The aggregate production capacity of existing capital goods in the economy. Zero or net change 2. Means a constant level in both the capital stock and output. Investments 3. Adjusts the capital stocks to maintain and even increase production and the level of the economic activities. Savings 4. The unspent portion of income during the period intended for spending.
Simple savings equation 5. Serves to emphasize the inverse relationship between the level of outflow and the amount of income generated in circular flow. Investment demand 6. Is inversely proportional to the interest rate level. Principle 7. States that the level of investment is a function of desired changes in the output. Joseph Shumpeter 8. Describes innovation as the introduction of an unfamiliar product and untested technology. Profit 9. The basic reason why businessman invests. Perceptive investors 10. Delves into technology changes, anticipates turning points in the business environment and decides the magnitude and type of investment one should make.
6.2 MULTIPLE CHOICE F 1. Interest rate A 2. Innovation H 3. Recession E 4. SEC B 5. BOI D 6. Multiplier I 7. MPC K 8. Consumption function J 9. Capital stock G 10. Profit
6.3 ESSAY
1. What are the Determinants of Saving? The determinants of savings are the price level which can affect expenditure and savings, the population growth which may change the level of savings depending on the well-being of the economy and the family income.
2. What are the Investment Demand Determinants? The investment demand determinants are the interest rate, the acceleration principle, innovations, profit and expectations.
3. What are