Which of the Following Would Increase Business Investment

question 98

Multiple Choice

Which of the following would increase business investment?

• A) An increase in excess productive capacity.
• B) A decline in business optimism.
• C) An increase in business taxes.
• D) A decrease in the real interest rate.
• E) A decrease in government subsidies to industries.

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Definitions:

Alpha

In statistical hypothesis testing, it represents the probability of committing a Type I error; the threshold significance level.

Critical Values

Thresholds in statistical hypothesis testing that determine the cutoff points for rejecting or not rejecting the null hypothesis.

T-statistic

A type of statistic used in hypothesis testing, calculated by dividing the departure of an estimated parameter from its hypothesized value by its standard error.

Sample Size

The number of observations or data points that constitute a sample in a statistical study.