Multiple Choice
Consider the following two events: (i) an increase in the cost of new capital goods; and (ii) a decrease in corporate income tax rates. How will these events affect the demand for investment?
A) The demand for investment increases.
B) The demand for investment decreases.
C) The two events have opposite effects on investment. Therefore, the demand for investment remains the same.
D) These events have an indeterminate effect on the demand for investment.
Correct Answer:
Verified
Correct Answer:
Verified
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