Investment tends to increase with
A) the wage rate and GDP but fall with the rental price of capital.
B) GDP but fall with the rental price of capital and the wage rate.
C) GDP and the rental price of capital required to maintain supply but fall with the wage rate.
D) GDP, the wage rate, and the rental price of capital required to maintain supply.
E) none of the above.

Question

Quizplus · Accepted Answer

Investment typically increases with GDP as higher economic output encourages more investment. However, it tends to fall with the rental price of capital, as higher costs of capital discourage investment. The wage rate does not directly affect investment in the same way.

Investment Tends to Increase with