Which of the Following Would Cause Investment Spending to Increase

question 9

Multiple Choice

Which of the following would cause investment spending to increase and aggregate demand to shift right?

• A)an increase in the money supply, but not an investment tax credit
• B)an investment tax credit, but not an increase in the money supply
• C)both an increase in the money supply and an investment tax credit
• D)None of the above are correct.

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Definitions:

Consumer

An individual who purchases goods or services for personal use.

Drastically

Describing actions taken with extreme or significant impact, often implying a substantial change or effect.

Persuasion

The process of swaying an individual's beliefs, attitudes, or actions through the use of argument, logic, or enticement.

Impersonal

Lacking personal feeling or attachment; not influenced by, showing, or involving personal feelings.