Which of the Following Would Cause Investment Spending to Decrease

question 69

Multiple Choice

Which of the following would cause investment spending to decrease and aggregate demand to shift left?

• A)a decrease in the money supply and an investment tax credit.
• B)the repeal of an investment tax credit and an increase in the money supply.
• C)a decrease in the money supply and the repeal of an investment tax credit.
• D)an investment tax credit and an increase in the money supply.

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Definitions:

Process Theories

Theories in psychology and management that focus on how people perceive and respond to different inputs and how this influences motivation and behavior.

Performance-Avoid Goal Orientation

A preference to avoid negative judgments about the outcome of one’s performance.

Performance-Prove Goal Orientation

A preference to obtain favourable judgments about the outcome of one’s performance.

Equity Theory

A theory that focuses on determining whether the distribution of resources is fair to both relational partners.