Keynes mentioned two factors that influenced planned investment spending
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 believed that planned investment spending is influenced by two main factors: interest rates and business expectations about the future. Interest rates affect the cost of borrowing money and thus influence the profitability of investment projects. Business expectations about the future, such as expected sales and profits, play a critical role in investment decisions because firms invest to increase their capacity to produce in the future.

Keynes Mentioned Two Factors That Influenced Planned Investment Spending