Which of the following will cause investment spending to increase?
A)An increase in the rate of interest.
B)An increase in the purchase price of capital equipment.
C)A decrease in wealth holdings in the country.
D)An increase in the age of capital goods.
E)A general feeling that the economy might move into a recession.

Question

Quizplus · Accepted Answer

An increase in the age of capital goods typically leads to increased investment spending as businesses seek to replace or upgrade outdated or depreciating assets to maintain efficiency and competitiveness.

Which of the Following Will Cause Investment Spending to Increase