More of society's resources will be channeled into capital when
A)interest rates are high
B)households decide to save less of their income
C)businesspeople have optimistic expectations about the future
D)corporate income taxes increase
E)aggregate income decreases

Question

Quizplus · Accepted Answer

When businesspeople have optimistic expectations about the future, they are more likely to invest in capital, anticipating higher returns on their investments.

More of Society's Resources Will Be Channeled into Capital When