Refer to the list below.Which two factors would most likely cause a change in investment spending? The following list of items is related to aggregate demand.Entrepreneurial ability
Consumer expectations
Degree of excess capacity
Personal income tax rates
Productivity
National income abroad
Business taxes
Domestic resource availability
Prices of imported products
Profit expectations on investments
A)2 and 5
B)3 and 10
C)2 and 7
D)6 and 9

Question

Quizplus · Accepted Answer

The degree of excess capacity and profit expectations on investments are directly related to investment spending. Excess capacity can discourage investment, while positive profit expectations can encourage it.

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