Which of the Following Is True Regarding Investment

question 65

Multiple Choice

Which of the following is true regarding investment?

• A) In the short run it increases aggregate supply but in the long run it increases aggregate demand.
• B) In the short run it influences aggregate demand and in the long run it influences the rate at which the economy grows.
• C) In the short run it influences aggregate demand but in the long run it retards economic growth since it requires saving.
• D) In the short run it reduces aggregate demand because it requires savings but in the long it promotes economic growth.