Which of the Following Scenarios Would Cause Investment to Decrease

question 7

Multiple Choice

Which of the following scenarios would cause investment to decrease?

• A) High foreign demand for government debt lowers interest rates.
• B) Vermont starts taxing tech firms to fund water quality improvement initiatives.
• C) The government announces that economists expect strong consumer confidence during the upcoming year.
• D) 5G technology requires increasing cell phone tower coverage.

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Definitions:

Plastic

A wide range of synthetic or semi-synthetic materials that are malleable and so can be molded into solid objects of diverse shapes.

Wood

A hard, fibrous material made of the stems and branches of trees or shrubs, often used for construction, furniture, and fuel.

Production Function

A mathematical relationship describing the maximum output possible from a given set of inputs in the production process.

Plastic

A synthetic material made from a wide range of organic polymers that can be molded into shape while soft, and then set into a rigid or slightly elastic form.