In the 1980s,one often-heard explanation for the low levels of net investment in the US and UK was that
A) developed economies had no incentives for acquiring new capital
B) investment opportunities were limited because the already large capital stock was inducing a low marginal product of capital
C) depreciation and obsolescence were so rapid that firms could barely keep up with demands for replacing existing capital
D) stock market participants sought short-term capital gains from market appreciations rather than long term dividends from investment
E) rapid price inflation was creating excessive investor uncertainty

Question

Quizplus · Accepted Answer

In the 1980s, it was commonly argued that stock market participants were more focused on short-term capital gains rather than long-term investments, which contributed to low levels of net investment.

In the 1980s,one Often-Heard Explanation for the Low Levels of Net