Business Fixed Investment, Residential Investment, and Inventory Investment ______ as the Real

question 96

Multiple Choice

Business fixed investment, residential investment, and inventory investment ______ as the real interest rate increases and ______ as output increases.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Sole Proprietorship

A business structure in which a single individual owns and operates the business, enjoying full control but also bearing unlimited liability.

Limited Liability

A legal structure that limits the financial responsibility of company owners or shareholders to the amount they have invested, protecting personal assets.

Double Tax Exemption

A tax principle where certain income is shielded from taxation at both the corporate and individual levels.

Ownership and Control

The legal rights to possess, use, and manage assets or property, and the ability to direct the operations and activities of an entity or resource.