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Which of Following Statements About Business Investment Spending Is FALSE

Question 228

Multiple Choice

Which of following statements about business investment spending is FALSE?


A) It includes spending on new goods, such as machinery, equipment, buildings, and inventories.
B) Changes in investment spending are the primary cause of changes in economic activity.
C) It is considered to be income-determined spending.
D) It is sensitive to changes in expected future profits.

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