Which of the Following Will Increase Investment Spending in the Economy,holding

question 179

Multiple Choice

Which of the following will increase investment spending in the economy,holding everything else constant?

• A)an increase in the federal government surplus
• B)an increase in the budget deficit
• C)an increase in consumer dissavings
• D)an increase in transfer payments

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Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization.

Accumulated Depreciation

The aggregate sum of depreciation costs accounted for a fixed asset since its inception of use.

Equipment Account

A financial account that tracks the acquisition cost and depreciation of a company's equipment.

Ordinary Repairs

Routine maintenance and repair costs that are expensed in the period incurred to keep an asset in its normal operating condition.