An increase in investment by U.S. firms that is intended to maintain U.S. competitiveness in world markets represents ________ in the United States.
A) an increase in autonomous expenditure
B) a decrease in autonomous expenditure
C) an increase in induced expenditure
D) a decrease in induced expenditure

Question

Quizplus · Accepted Answer

An increase in investment by U.S. firms to maintain competitiveness in world markets is considered an increase in autonomous expenditure because it is initiated independently of the current level of national income or GDP, aiming to enhance future growth and competitiveness.

An Increase in Investment by U