Economists Believe That Changes in Investment Spending Are Important for Forecasting

question 240

Multiple Choice

Economists believe that changes in investment spending are important for forecasting the business cycle because

• A) increases in investment spending raise tax revenues, which allows the government to spend more.
• B) investment closely reflects consumer sentiment.
• C) changes in investment shows where the economy has been.
• D) investment is a key determinant of economic growth.

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