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.
E)A and C.

Question

Quizplus · Accepted Answer

All of the factors listed - real interest rates, financial frictions, and emotional waves of optimism and pessimism - can influence planned investment spending. Real interest rates affect the cost of borrowing, while financial frictions may make it harder or more expensive for businesses to obtain financing. Emotional waves of optimism and pessimism can affect the confidence of business owners and their willingness to invest in new projects.

Factors That Influenced Planned Investment Spending Include