Investment levels depend mainly on
A) high levels of consumption in the economy.
B) strong government demand.
C) the rate of return on capital.
D) tax incentives.

Question

Quizplus · Accepted Answer

Investment levels mainly depend on the rate of return on capital. Investors invest money in a project or business with expectations of earning returns on their investment. The expected rate of return on investment is the main criteria for investors to decide whether to invest or not. High levels of consumption, strong government demand, and tax incentives may support investment but are not the main driving force behind investment decisions.

Investment Levels Depend Mainly on