Which of the Following Would Cause Investment Spending to Increase

question 9

Multiple Choice

Which of the following would cause investment spending to increase and aggregate demand to shift right?

• A)an increase in the money supply, but not an investment tax credit
• B)an investment tax credit, but not an increase in the money supply
• C)both an increase in the money supply and an investment tax credit
• D)None of the above are correct.

---

Definitions:

Profitable Operations

Operations within a business that generate more revenue than the costs incurred to perform them, leading to a profit.

Non-Computerized Systems

Systems or methods of operation that function without the use of computer technology, often manual or based on analog processes.

Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Printed Checks

A method of payment involving a paper document that orders a bank to pay a specific amount of money from a person's account to another individual or entity.