Investment is more stable than consumption

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Reference no: EM13733534

Answer true or false:

1. When you buy 100 shares of IBM it is an investment according to economists.

2. If consumers have few durable goods, this will lower the C line, all other things equal.

3. A corporation is a legal person separate from the owners.

4. Investment is more stable than consumption.

5. Consumption is about 2/3 of overall spending each year in the US.

6. Net investment is gross investment minus depreciation.

7. High interest’s rates discourage business investment, all other things equal.

8. A bond holder is a part owner of a company.

9. High consumer debt would lower C line, all other things equal.

10. Income is the largest determinant of consumption.

Reference no: EM13733534

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