Which of the following reasons provides an additional stimulus for investment?
A) Higher output requires firms to invest in new plants and equipment.
B) Higher output causes families to increase their stock of housing.
C) Higher output calls for higher pipeline stocks of inventories.
D) All of the above.
E) Only a and b.

Question

Quizplus · Accepted Answer

All the options provided are reasons that stimulate investment. Higher output necessitates investment in new plants and equipment for firms to meet demand (A), leads families to increase their housing stock (B), and requires higher pipeline stocks of inventories to manage the supply chain efficiently (C).

Which of the Following Reasons Provides an Additional Stimulus for Investment