Another view of investment spending is that it tends to be
A) a function of consumption spending.
B) a function of stock market prices.
C) a function of government spending.
D) a function of the dividends paid to owners of stocks.

Question

Quizplus · Accepted Answer

Investment spending is often influenced by stock market prices, as higher stock prices can increase the wealth of investors and the ability of firms to raise capital, thereby encouraging more investment.

Another View of Investment Spending Is That It Tends to Be