Real planned investment spending is positively related to all of the following EXCEPT
A) real disposable income.
B) wealth.
C) the interest rate.
D) producer expectations of future profit.

Question

Quizplus · Accepted Answer

Real planned investment spending is negatively related to the interest rate because as interest rates increase, the cost of borrowing funds for investment goes up, making investment less attractive. Choices A, B, and D are factors that positively influence investment spending.

Real Planned Investment Spending Is Positively Related to All of the Following