-Refer to Figure 17 -1. Which of the following is consistent with the graph depicted above?
A) Technological change increases the profitability of new investment.
B) An expected recession decreases the profitability of new investment.
C) The government runs a budget surplus.
D) Households become spendthrifts and begin to save less.

Question

-Refer to Figure 17 -1. Which of the following is consistent with the graph depicted above?
A) Technological change increases the profitability of new investment. 
B) An expected recession decreases the profitability of new investment. 
C) The government runs a budget surplus. 
D) Households become spendthrifts and begin to save less.

Quizplus · Accepted Answer

Technological change can lead to increased efficiency and productivity, making new investments more profitable.