Under which of the following circumstances will investment increase?
A)if business taxes increase or if business confidence increases
B)if business taxes increase or if business confidence decreases
C)if business taxes decrease or if business confidence decreases
D)if business taxes decrease or if business confidence increases

Question

Quizplus · Accepted Answer

Investment will increase if business taxes decrease or if business confidence increases, as these factors make it more attractive and profitable for businesses to invest in new projects and ventures. Conversely, if business taxes increase or business confidence decreases, investment may decrease as businesses become more cautious and risk-averse.

Under Which of the Following Circumstances Will Investment Increase