Asked by Abhishek Prodduturi on May 28, 2024
Verified
Each of these is a determinant of the level of I except the
A) capacity utilization rate.
B) margin rate.
C) sales outlook.
D) interest rate.
E) expected profit rate.
Capacity Utilization Rate
The percentage of potential economic output that is actually realized, indicating how fully a country or enterprise is using its productive resources.
Margin Rate
Typically refers to the interest rate charged by brokers for borrowing funds to invest in securities.
Sales Outlook
A forecast or projection of future sales performance based on current market trends, data analysis, and sales history.
- Determine the elements affecting investment magnitude within an economy.
- Comprehend the influence of interest rates, anticipated profits, and the phases of economic cycles on the decision-making process for investments.
Verified Answer
AH
Ashlee HilmanMay 29, 2024
Final Answer :
B
Explanation :
The term "I" typically refers to investment. The main determinants of investment levels include capacity utilization rate, sales outlook, interest rate, and expected profit rate. Margin rate, however, is not directly a determinant of investment levels; it is more related to profitability and pricing strategies.
Learning Objectives
- Determine the elements affecting investment magnitude within an economy.
- Comprehend the influence of interest rates, anticipated profits, and the phases of economic cycles on the decision-making process for investments.