One Possible Disadvantage of a Cyclical Investment Subsidy Such as the Former

question 35

Multiple Choice

One possible disadvantage of a cyclical investment subsidy such as the former Swedish Investment Funds System is that:

• A) it is believed that investment does not respond to changes in the cost of capital.
• B) if the economy begins to slow down,firms may anticipate a future subsidy and delay investment.
• C) consumption should be encouraged,not investment.
• D) most economists believe that the government should not try to control the business cycle.

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Definitions:

Asian American

A person of Asian descent living in America; often relating to a broad group of American citizens and residents with origins from East, Southeast, or South Asia.

Buying Patterns

Buying Patterns refer to the habits or tendencies displayed by consumers when purchasing goods and services, often influenced by various factors such as tradition, culture, or economic situation.

Entrepreneurial

Pertaining to the characteristics, behaviors, and practices of individuals who initiate, organize, and operate a business venture.

Asian American

A term referring to individuals in the United States who have Asian ancestry from countries within the continent of Asia.