Which of the Following Is Not a Determinant of Investment

question 30

Multiple Choice

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

• A)expectations about future profitability
• B)changing consumers' tastes and preferences
• C)the cost of labor, an alternative factor of production
• D)changes in the rate of corporate profit tax

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Definitions:

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and payroll.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Return On Investment

A metric used to evaluate the efficiency of an investment, calculated as the profit from an investment relative to its cost.

Invested Assets

Resources put into a business by its owners or shareholders with the expectation of generating future income or profit.