Which of the following statements is FALSE? A. Investment spending is influenced

Question

Which of the following statements is FALSE?

A. Investment spending is influenced by the optimism and confidence of the business community regarding their long-term profit outlook.

B. Investment spending is influenced by medium and long-term interest rates.

C. Investment spending is influenced by the ratio of the stock market value of capital to the book value of capital.

D. Investment spending is directly influenced by changes in personal tax rates

E. Investment spending is influenced by how fast sales rise.

Explanation / Answer

The correct answer should be D. Investment spending will not be influenced by personal tax rates. The correct answer should thus be D.

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