17. Which of the following statements are correct? A. An increase in the DJIA wo

Question

17. Which of the following statements are correct? A. An increase in the DJIA would increase household wealth, which will result in more household spending and thus a decrease in Yd. B. An increase in inflation will lower the real value of wealth and lower consumption thus reducing Yd. C. An acceleration in depreciation write-offs will result in tax savings accruing to businesses sooner. And the present value of the ENR stream will rise and expected rates of profit will likewise rise, resulting in an increase in investment spending and Yd will decrease. D. all of the above are correct. E. None of the above is correct.

Explanation / Answer

option C is correct

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