Which Statement Is False? Investment Spending

question 143

Multiple Choice

Which statement is false? Investment spending

• A) increases when the price level falls.
• B) can often be postponed.
• C) is based on expectations of future prices and costs.
• D) can depend on borrowed money.
• E) is sensitive to changes in interest rates.

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Definitions:

Coercive Power

The capacity to control others through the fear of punishment or the loss of valued outcomes.

Legitimate Power

Legitimate Power is authority that is officially sanctioned or accepted due to a person’s position or role within an organization or system.

Referent Power

A form of influence where a person elicits compliance or admiration from others based on charisma or personal traits rather than formal authority.

Legal-Rational

A form of authority based on established laws, rules, and procedures that are designed to be objective and impersonal.