Holding other factors constant, an incline in the price of new capital goods will:
A) increase national saving.
B) decrease national saving.
C) increase investment.
D) decrease investment.

Question

Quizplus · Accepted Answer

When new capital goods prices increase, investors are become less inclined to invest. This is the same idea as when prices increase in consumer goods markets.

Holding Other Factors Constant, an Incline in the Price of New