Desired investment expenditure will generally fall as a result of which of the following changes?
A)a decrease in business confidence
B)a decrease in interest rates
C)an increase in government purchases
D)an increase in sales volume
E)an increase in business confidence

Question

Quizplus · Accepted Answer

If there is a decrease in business confidence, businesses will be less likely to invest in new projects or equipment. This will result in a decrease in desired investment expenditure.

Desired Investment Expenditure Will Generally Fall as a Result of Which