Which of the following factors is not a determinant of investment spending? (2024)

Which of the following factors is not a determinant of investment spending?

Answer - Demographics is not a major factor in determining investment spending.

Which of the following is not a key determinant of investment spending?

Which of the following is not a determinant of investment spending? Here's the best way to solve it. The correct answer is: Real income. Real income is not a determinant of investment spending.

What is the main determinant of investment spending?

The basic determinants of investment are the expected rate of net profit that businesses hope to realize from investment spending and the real rate of interest. When the real interest rate rises, investment decreases; and when the real interest rate drops, investment increases--other things equal in both cases.

What are the four main determinants of investment?

What are the four main determinants of​ investment? Expectations of future​ profitability, interest​ rates, taxes and cash flow. How would an increase in interest rates affect​ investment? Real investment spending declines.

Which is the determinant factor of investment?

This section examines eight additional determinants of investment demand: expectations, the level of economic activity, the stock of capital, capacity utilization, the cost of capital goods, other factor costs, technological change, and public policy.

What are the determinants of spending?

Determinants of Consumption Spending: These determinants are categorized into income and non-income factors. The income factor is the disposable income, which is the income after taxation. Non-income determinants include interest rates, consumer expectations, wealth, consumer confidence, and demographics.

Which of the following is not a determinant of demand?

The correct answer is the Taste and preference of the seller. The taste preference of the seller is not a determinant of demand because it depends upon the taste preference of buyers or individuals. Taste and Preferences of consumers are influenced by advertisem*nts, changes in fashion, climate, new innovations etc.

What are the two basic determinants of investment spending?

Here's the best way to solve it. The two basic determinants of investment spending are expected returns and real interest rates.

What three factors does investment spending depend on?

Planned investment spending depends on interest rates, expectations on future real GDP, and present level of production capacity.

What are the determinants of planned investment spending?

Planned investment spending depends negatively on the interest rate and on existing production capacity; it depends positively on expected future real GDP. The accelerator principle says that investment spending is greatly influenced by the expected growth rate of real GDP.

What are the determinants of direct investment?

Their study found that the main determinants of FDI included labour cost, the size of market, trade openness, economic policy uncertainty and real exchange rate.

What is investment spending?

Title English: investment spending. Definition English: Money spent on capital goods, or goods used in the production of capital, goods, or services. Investment spending may include purchases such as machinery, land, production inputs, or infrastructure.

Which is are the determinants of private investment?

a. Government investment, economic growth, credit availability for private investment, and exchange rate have positive and significant impact on private investment. The higher of each variable make the higher private investment, or conversely the lower of each variable will decrease private investment.

How many investment factors are there?

There are five investment style factors, including size, value, quality, momentum, and volatility. The other type of factor investing looks at macroeconomic factors such as interest rates, inflation, and credit risk.

What are the three factors of determinants?

FACTOR DEMAND DETERMINANTS: The three most important determinants that shift the factor demand curve are: (1) product price, (2) factor productivity, and (3) prices of other factors. Comparable to any determinant, these three cause the factor demand curve to shift to a new location.

What are the 4 types of spending?

What are the key determinants of consumption and spending?

Essentially, the propensity to consume out of additional income and the current income level are the key determinants dictating the levels of income, consumption, and savings in an economy.

What are the five factors that affect consumer spending?

5 answersConsumers' buying behavior is influenced by various factors. These factors include health consciousness, knowledge about the product, product availability, price, marketing strategies, and social factors.

Which factor is not a determinant of consumption?

The correct answer is C. the growth rate of GDP relative to growth rates in other countries. All the other options do play a role in consumption. However, the growth rate of GDP relative of growth rate in other countries does not play a role in the amount of consumption spending in a local economy.

Which factor is not a determinant of supply?

Answer and Explanation: Income is not a determinant of supply. The supply of a commodity depends on various determinants.

Which of the following is not a determinant of individual supply?

As there is only one firm supplying the good, the number of firms is not a determinant of individual supply.

What are the three types of investment spending?

The three categories of investment spending are residential investment (housing), inventory investment, and business fixed investment.

What two factors does investment depend on?

The extent of the investment multiplier depends on two factors: the marginal propensity to consume (MPC) and the marginal propensity to save (MPS). A higher investment multiplier suggests that the investment will have a larger stimulative effect on the economy.

What are two 2 factors influencing investment?

For instance, an investor's age, risk tolerance, and financial goals can all affect the types of investments they choose.

What is the most important determinant of investment spending and consumer spending?

What Is the Most Important Determinant of Consumer Spending? The key factor that determines consumer spending is income and employment.