Financial investment in economy

Question 1

Injections in to Circular Flow(House holds + Firms)

Answer 1

Government Spending

Exports

Investment

Question 2

Leakages

Answer 2

Taxes

Imports

Savings

Question 3

If economy equilibrium (formula)

Answer 3

G+ X + I = T + M + S

Question 4

Net National Income formula

Answer 4

GNP - Capital consumption

Question 5

Gross National Product

Answer 5

GDP + Net Property from abroad

Question 6

Rising Stock and Falling Stock examples

Answer 6

Rising Stock = Bull

Falling Stock = Bear

Question 7

Fisher equation (Theory of Money)

Answer 7

MV = PT

M= Money supply in economy 
V = Velocity of circulation of money 

P = Price levels in economy 
T= Transaction (Output)

Question 8

Recession def

Answer 8

Two or more quarters of falling GDP

Question 9

Gross Domestic Product Formula (GDP)

Answer 9

C+I+G+(X-M)

C- Consumer Expenditure

I- Private Investment

G- Increase own spending

X-M Improve balance of payments ( exports vs imports)

Question 10

Recession - Interest rates

Answer 10

Inflation and Interest rates = low

Question 11

Boom - Interest Rates

Answer 11

Interest rates high