Which of the Following Is Not a Determinant of Investment

question 121

Multiple Choice

Which of the following is not a determinant of investment demand?

• A) Producers' expectations about the level of economic activity
• B) A decline in consumers' confidence in the economic outlook
• C) The quantity of capital stock
• D) Household wealth

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Definitions:

Deadweight Loss

A cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and gasoline.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.