Which of the following is least likely to contribute to the volatility of investment spending?
a. Expectations about business conditions
b. Changes in government spending
c. Changes in tax laws
d. Changes in capacity utilization
e. Interest rate fluctuations
b
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One way to restructure Social Security to meet its future obligations would be to _____
a. lower the retirement age b. reduce Social Security benefits c. increase benefits only on the poor d. eliminating pay-as-you-go
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . In the long run, the firm should
a. Shut-down as the firm is making a loss of $10,000 per week b. Shut-down as price is lower than average cost c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs