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.

Analyze the impact of price changes on consumer choices and budget allocation.

Understand the principle of opportunity cost through trade-offs in consumption choices.

Apply principles of microeconomics to practical scenarios involving budget constraints and choices.

Develop decision-making skills regarding budget allocation and spending in the context of microeconomic theory.