Refer to the information below.Investment spending would most likely be influenced by changes in: The following list of factors, are related to the aggregate demand curve.Real-balances effect
Household expectations
Interest-rate effect
Personal income tax rates
Profit expectations
National income abroad
Government spending
Foreign trade effect
Exchange rates
Degree of excess capacity
A)1 and 3.
B)4 and 6.
C)5 and 10.
D)8 and 9.

Question

Quizplus · Accepted Answer

Investment spending is influenced by profit expectations and the degree of excess capacity, as these factors directly affect business decisions on capital expenditures.

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