What are the determinants of investment spending?
What will be an ideal response?
Investment spending is positively related to real income, expected business profits and confidence, and capacity utilization rates. Investment spending is negatively related to the real interest rate and business taxes.
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If a producer is not able to expand its plant capacity immediately, it is
A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.
If V were 8, P = 4, and M = 700, how much would Q be?
What will be an ideal response?
Normative analysis offers decision makers the most valuable information when choosing among alternatives
Indicate whether the statement is true or false
If the overall price level increases, it will cause a decrease in the quantity of real goods and services demanded but not a change in aggregate demand curve
a. True b. False Indicate whether the statement is true or false