Interest Rates and Investment Rise

question 37

Multiple Choice

Interest rates and investment rise.Which of the following could explain these changes?

• A)the government runs a larger deficit
• B)the government institutes an investment tax credit
• C)the government replaces the income tax with a consumption tax
• D)None of the above is correct.

---

Definitions:

Breach of Contract

The violation of a contractual obligation by failing to perform one's own promise, by impeding another party's performance, or by inducing another party to breach.

Statute of Frauds

A legal principle requiring certain contracts, such as those for the sale of land, to be in writing to be enforceable.

Verbal Contract

A legal agreement made through spoken words instead of written documentation, though harder to prove.

Indefinite Period

A time span without a specified end date, characterized by an absence of defined duration.