Factors that influenced planned investment spending include ________.
A) real interest rates
B) financial frictions
C) emotional waves of optimism and pessimism
D) all of the above

Question

Quizplus · Accepted Answer

Planned investment spending can be influenced by a range of factors, including real interest rates, financial frictions, and emotional waves of optimism and pessimism. Real interest rates affect the cost of borrowing for investment, while financial frictions such as high transaction costs or difficulties accessing credit can also affect planned investment. Emotional waves of optimism and pessimism can influence how confident businesses are in the economy and their own financial prospects, which can affect investment decisions. Therefore, all of the above factors can influence planned investment spending.

Factors That Influenced Planned Investment Spending Include ________