05 Jun Question Which of the following will increase investment:
Question
Which of the following will increase investment:
a technological improvement that increases the marginal product of capital
a decline in the price of new capital goods
a decrease in the tax rate on revenues generated by new capital goods
All of the above
Which of the following will decrease the real interest rate and increase investment?
Holding other factors constant, a tax increase moves the government from a deficit to a surplus
Holding other factors constant, Employers automatically enrol their employees in a retirement savings plan
Holding other factors constant, growing concerns about job security raise precautionary savings.
All of the above
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