Which Policy Mix Serves Best to Encourage an Increase in Business

question 14

Multiple Choice

Which policy mix serves best to encourage an increase in business fixed investment?

• A)high government spending and low corporate income taxes
• B)high government spending and restrictive monetary policy
• C)high government spending and removal of investment tax credits
• D)low government spending and expansionary monetary policy
• E)income tax cuts and restrictive monetary policy

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Definitions:

Copyright

Copyright is a legal term describing rights given to creators for their original works, including the exclusive right to reproduce, distribute, and adapt the creation.

Rivals Imitate

The process by which companies mimic the strategies, products, or practices of their competitors.

Originator's Profits

The earnings generated by the creator or initial producer of a product or service, typically before any secondary market involvement.

Innovation

The act of introducing something new or making improvements to existing products, services, methodologies, or technologies.