Two basic determinants of investment spending are
A)consumer spending and government spending.
B)expected returns and real interest rates.
C)general price level and the level of output.
D)domestic trade and international trade.

Question

Quizplus · Accepted Answer

Expected returns and real interest rates are the two basic determinants of investment spending. Expected returns are the returns that investors expect to earn on their investments, and real interest rates are the interest rates that investors earn after adjusting for inflation.

Two Basic Determinants of Investment Spending Are