Which of the Following Would Decrease Business Investment

question 77

Multiple Choice

Which of the following would decrease business investment?

• A) A decrease in business taxes.
• B) An increase in the cost of acquiring capital goods.
• C) An increase in the rate of technological change.
• D) An increase in the relative price for the firm's output.
• E) An increase in business subsidies.

Understand the concept and implications of rent control as a form of price ceiling.

Analyze the effects of market interventions on supply, demand, and overall market equilibrium.

Understand the concept of price ceilings and their effects on markets.

Recognize the inefficiencies caused by binding price ceilings and their rationing mechanisms.

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Definitions:

Intestate

The condition of having died without having made a valid will, leading to the distribution of assets according to state laws.

Real Property

Land and anything permanently attached to it, such as buildings, trees, and minerals, distinguished from personal property.

Domicile

A place where a person lives or has his home; in a strict legal sense, the place where he has his true, fixed, permanent home and principal establishment, and to which place he has, whenever he is absent, the intention of returning.

Trustee's Fiduciary Duties

Obligations of a trustee to act in the best interests of the beneficiaries, including duties of loyalty, care, and impartiality.