Investment spending increases with
A) lower interest rates.
B) rapid technological change.
C) a decrease in the price of capital goods.
D) production levels near capacity.
E) all of these.

Question

Quizplus · Accepted Answer

Investment spending increases with lower interest rates because it becomes cheaper for businesses to take out loans to finance investments. Rapid technological change can also drive investment spending as businesses seek to stay competitive and keep up with advancements. A decrease in the price of capital goods can make investments more affordable and attractive. Production levels near capacity can signal to businesses that it's time to expand and invest in more capacity. Therefore, all of these factors can lead to an increase in investment spending.

Investment Spending Increases with