Which of the following would increase the level of planned real investment?
A. an expectation of higher future costs
B. an expectation of higher future profits
C. an increase in the interest rate
D. an increase in business taxes
Answer: B
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The usual aim of expansionary fiscal policy is to increase
A. aggregate demand. B. government spending. C. both aggregate demand and aggregate supply. D. aggregate supply.
When economists state that the opportunity cost of a product increases as more of it is produced, what do they mean? For instance, what is the opportunity cost? And, where in a PPF diagram does this statement apply and where does it not apply?
What will be an ideal response?
Which of the following caused pre-1984 volatility in residential construction?
A) financial regulations B) tax cuts C) currency volatility D) interest rates
If demand is inelastic
A) then a 1% increase in price leads to a fall in quantity of greater than 1%. B) then a 1% increase in price leads to a fall in quantity of less than 1%. C) then a 1% increase in price leads to a fall in quantity of 1%. D) then a 1% increase in price leads to a rise in quantity of less than 1%.