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.

Question

Quizplus · Accepted Answer

Investment spending typically decreases when the price level falls, as lower prices mean lower profits for businesses producing goods and services.

Which Statement Is False? Investment Spending