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:

Raw Materials Inventory

The stock of basic materials that are used in the production process but have not yet been processed.

Raw Material Purchases

The cost associated with acquiring raw materials needed for production.

Credit Sales

Credit sales are transactions where the customer purchases goods or services on account, paying at a future date rather than at the time of purchase.

Finished Goods Inventory

The stock of completed products ready for sale but not yet sold at the end of an accounting period.