Planned investment spending ________.
A)is equal to planned fix investment spending plus the amount of inventory investment planned by firms
B)is closely related to the real interest rate
C)is heavily influenced by expectations about the future
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Planned investment spending includes both planned fix investment spending and the amount of inventory investment planned by firms. It is closely related to the real interest rate because the interest rate affects the cost of borrowing for investment projects. Additionally, expectations about the future can heavily influence investment decisions, as firms may be more willing to invest if they expect economic growth and increased demand for their products in the future.

Planned Investment Spending ________