12章练习及答案.doc

12Investment and Financial Markets Practice Quiz (Answers are provided at the end of the Practice Quiz.) 1. An investment, broadly defined, is a. the purchase of stocks, bonds, and other financial securities that yield interest. b. the purchase of a machine or a tool to be used in the production process. c. a risk-taking activity that may yield substantial returns. d. an action that creates a cost today but provides benefits in the future. 2. According to the accelerator theory, firms anticipate that their investments in plant and equipment will be profitable a. when the government reduces the capital gains tax. b. when the depreciation of plant and equipment is low. c. when the growth of inventories is expected to increase in the future. d. when real GDP growth is expected to be high. 3. When investment spending is plotted as a share of U.S. GDP, between 1970 and 2007, we discover that a. swings in investment have occurred over long periods of time. b. during recessions, investment spending has fallen sharply. c. investment spending is highly countercyclical, i.e., moves in the opposite direction to the economy. d. all of the above 4. This question tests your understanding of Application 1 in this chapter: Energy price uncertainty reduces investment spending. How do fluctuations in energy prices affect investment decisions by firms? The primary reason why volatility in oil prices affects GDP is that a. volatile oil prices appear to affect consumption decisions more than investment decisions. b. firms stop all investments in energy-saving technologies when oil prices are volatile. c. if energy prices remain high, it may be profitable to invest in new energy-saving technology, but if prices fall, these investments would be unwise. d. if future oil prices are uncertain, both exports and imports will tend to fall. 5. The relationship between the present value of a given payment in the future and the interest rate is an example of a key