Planned investment spending is higher ________.
A) when real interest rate is higher
B) during financial frictions
C) when businesses are optimistic
D) A and C only

Question

Quizplus · Accepted Answer

Planned investment spending is higher when businesses are optimistic as they are more likely to invest in new projects and expansions. The real interest rate may not have a significant impact on investment spending, and financial frictions may actually decrease investment spending due to limited access to funding.

Planned Investment Spending Is Higher ________