Investment spending will decrease when
A) firms become more optimistic about earning future profits.
B) the corporate income tax decreases.
C) business cash flow decreases.
D) the interest rate falls.
C
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Which of the following was not claimed in the book Time on the Cross, by Fogel and Engerman (1974)?
(a) Slavery was growing stronger economically before the Civil War. (b) Slave agriculture in the South was more productive than was family farming in the North. (c) Slave breeding and sexual exploitation by slave owners were normal aspects of the slave system. (d) Slave field hands were harder working and more efficient than were white agricultural workers.
Which of the following best distinguishes a "command economy" from a "market economy?" a. A command economy is more efficient than a market economy because decision making is centralized
b. There is scarcity in command economies, but not in market economies. c. Command economies are less prone to inflation than are market economies. d. Production and distribution decisions are made by central planners in a command economy, but not in a market economy.
Which of the following would cause price to increase?
a. an increase in supply b. a decrease in demand c. a surplus of the good d. a shortage of the good
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 10 cents, then this firm:
A. should shut down. B. will earn an economic loss. C. should produce 50 doughnuts. D. should shut down in the long run.