Keynes mentioned two factors that influenced planned investment spending. They are ________.
A) interest rates and disposable income
B) interest rates and business expectations about the future
C) disposable income and business expectations about the future
D) interest rates and business expectations about inflation

Question

Quizplus · Accepted Answer

Keynes identified two determinants of planned investment spending: interest rates and business expectations about the future. Interest rates play a role in the cost of borrowing, which can affect a firm's willingness to invest. Business expectations about the future, such as expectations of future sales or profits, can also influence firms' decisions to invest. Disposable income and expectations of inflation are not factors that Keynes specifically identified as influencing planned investment spending.

Keynes Mentioned Two Factors That Influenced Planned Investment Spending