ECO401

1.The investment demand curve shows the relationship between the levels of:

1. Investment and Consumption
2. Consumption and Interest Rate
3. Investment and Interest Rate
4. None

2.In a portfolio investment:

<!--[if !supportLists]-->a.      <!--[endif]-->Investors are directly involved in managing the operations.

<!--[if !supportLists]-->b.      <!--[endif]-->As in direct investment, investors export goods and services abroad.

<!--[if !supportLists]-->c.      <!--[endif]-->Investors transfer the technology to local investors.

<!--[if !supportLists]-->d.      <!--[endif]-->Investors have no control over operations.

3.Potential GDP is the level of aggregate output:

1. That can be produced if structural unemployment is zero.
2. That can be produced at a zero unemployment rate.
3. That can be sustained in the long run, if the inflation rate is zero.
4. That can be sustained in the long run without inflation.