A Decrease in Investment Demand Would Most Likely Be Caused

question 27

Multiple Choice

A decrease in investment demand would most likely be caused by a

• A) decrease in the market interest rate.
• B) decrease in corporate income tax rates.
• C) decrease in the cost of new capital goods.
• D) decrease in the expected demand for output.

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Definitions:

Responsibility Centre

A unit within an organization, such as a department or division, whose manager is accountable for specific financial and operational outcomes.

Controllable

Refers to costs or factors within a business that can be managed or influenced by decisions made by the company.

Uncontrollable

A term referring to factors or costs that cannot be directly controlled or influenced by decisions in the short term.

Uncontrollable Costs

Costs that cannot be influenced or changed by the actions of a specific individual or management level within the organization.