Which of the following scenarios would cause investment to decrease?
A) High foreign demand for government debt lowers interest rates.
B) Vermont starts taxing tech firms to fund water quality improvement initiatives.
C) The government announces that economists expect strong consumer confidence during the upcoming year.
D) 5G technology requires increasing cell phone tower coverage.

Question

Quizplus · Accepted Answer

Taxing tech firms would decrease their profits and potentially make them less attractive as an investment opportunity. This would lead to a decrease in investment. The other scenarios do not necessarily indicate a decrease in investment.

Which of the Following Scenarios Would Cause Investment to Decrease