Investment will decrease if business taxes ____, real interest rates ____, or if business confidence ____.
A)increase, increase, increases
B)decrease, decrease, decreases
C)increase, increase, decreases
D)decrease, decrease, increases

Question

Investment will decrease if business taxes ____, real interest rates ____, or if business confidence ____.
A)​increase, increase, increases
B)​decrease, decrease, decreases
C)​increase, increase, decreases
D)​decrease, decrease, increases

Quizplus · Accepted Answer

Investment is likely to decrease if business taxes increase (making investment more costly), real interest rates increase (making borrowing more expensive), or if business confidence decreases (reducing the likelihood of future profitability and thus the incentive to invest).

Investment Will Decrease If Business Taxes ____, Real Interest Rates