Which of the following factors would decrease investment demand?





A.  A decrease in business taxes

B.  An increase in the cost of acquiring capital goods

C.  An increase in the rate of technological change

D.  A decrease in the stock of capital goods on hand


B.  An increase in the cost of acquiring capital goods

Economics

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A. $3,500 B. $3,250 C. $3,000 D. $2,500

Economics

The risk premium is negative when tastes are risk averse.

Answer the following statement true (T) or false (F)

Economics

Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm.  Figure 15.1 Refer to Figure 15.1. In this industry in the long run,

A. firms will start to incur economic losses. B. product supply will decrease so prices will go up. C. firms will enter until all firms break even economically. D. product demand will increase so that profits are increased.

Economics

Which of the following contains only normative statements?

a. The birth rate is reduced as economies urbanize, but that also leads to a decreased average age of developing countries' populations. b. An increase in the price of corn will decrease the amount of corn purchased. However, it will increase the amount of wheat purchased. c. A decrease in the price of butter will increase the amount of butter purchased, but that would be bad because it would increase Americans' cholesterol levels. d. None of the above contain only normative statements.

Economics