An investment tax credit ________.
A)is designed to incentivize higher capital stock expenditures at any given interest rate
B)may lead to increases in autonomous investment
C)may put upward pressure on the interest rate
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

An investment tax credit is designed to incentivize higher capital stock expenditures, which may lead to increases in autonomous investment. This increased demand for investment may put upward pressure on the interest rate. Therefore, all of the given options are correct.

An Investment Tax Credit ________