Which of the following scenario would most likely cause investment spending to decrease? a. Real income increases.
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Question:
Which of the following scenario would most likely cause investment spending to decrease?
a. Real income increases.
b. Real interest rates increase.
c. A firm's revenues increase while their costs remain constant.
d. Expected future income increases.
Expert Answer:
b Real interest rates increase An increase in real interest rates would lead to an increase in the c... View the full answer
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