Investment Spending Will Increase When The

question 130

Multiple Choice

Investment spending will increase when the:

• A)interest rate rises.
• B)company income tax increases.
• C)business cash flow increases.
• D)firms become more pessimistic about earning future profits.

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Definitions:

Unforeseen Difficulties

Challenges or complications that could not have been predicted or expected, often affecting the execution of plans or projects.

Past Consideration

A concept in contract law that refers to an act or benefit given prior to the promise being made, which therefore does not constitute valid consideration for a contract.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific period.

Promissory Estoppel

A legal principle that prevents a party from backing out of a promise which led the other party to take action or abstain from it, based on the promise.