An Increase in Investment Demand Would Most Likely Be Caused

question 94

Multiple Choice

An increase in investment demand would most likely be caused by a(n)

• A) increase in the market interest rate.
• B) increase in the level of economic activity.
• C) increase in the cost of new capital goods.
• D) decrease in the expected demand for output.

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Definitions:

Net Cash

The amount of cash remaining after all cash inflows and outflows have been accounted for over a specific period.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments, as part of the company's investment strategy.

Net Cash

The total amount of cash and cash equivalents a company possesses after deducting all liabilities, often used to assess its financial health.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.