Investment spending will decrease when
A) firms become more optimistic about earning future profits.
B) the corporate income tax decreases.
C) business cash flow decreases.
D) the interest rate falls.
C
You might also like to view...
A perfectly competitive ebook publishing firm currently sells its ebook at the market price of $6. Its average total cost is $5.50. In this case:
a. since average total cost is less than the price, the firm will shut down. b. the firm has positive economic profits. c. the firm is losing money but will continue to operate. d. the firm has zero economic profits.
In the classical model, the quantity of loanable funds supplied is
a. positively related to the level of income b. negatively related to the price level c. positively related to the price level d. negatively related to the interest rate e. positively related to the interest rate