Which of the following is the best example of investment as defined by economists?

What is the investment? By investment, economists mean the production of goods that will be used to produce other goods. This definition differs from popular usage, in which decisions to buy shares (see stock market) or bonds are considered an investment. How does investment promote economic growth? Business investment can affect the short- and long-term …

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Which three factors make starting a business a highly risky investment?

What is a 401k and why is it important? Quick reminder: A 401(k) is an employer-sponsored retirement plan where you can contribute a portion of the pre-tax dollars from your paycheck. With regular contributions, it can be a powerful retirement savings tool for many. What are the pros and cons of 401k? The advantages of …

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Which of the following affects the present value of an​ investment?

What happens when the discount rate increases? Increasing the discount rate gives depository institutions less incentive to borrow, thus reducing their reserves and lending activity. What is the discount rate and what does it affect? The discount rate is a financial term that can have two meanings. In banks, it is the interest rate that …

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