All other things equal, you would expect business investment spending to increase as a result of:
A) improved profit expectations.
B) expectations of strengthening consumer demand.
C) a decrease in the interest rate for borrowed funds.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are factors that can lead to an increase in business investment spending. Improved profit expectations, stronger consumer demand, and lower borrowing costs can all make investment more attractive to businesses.

All Other Things Equal, You Would Expect Business Investment Spending