Exam Question
Which of the following would cause business investments spending to rise
- 1. an increase in real interest rates from 5% to 8%
- 2. a decrese in the corporate profits tax rate from 48% to 34%
- 3. a reduction of the investment tax credit from 10% to 2%
- 4. sales falling in relation to capacity from 90% to 60%
View Answer
Answer 2. a decrese in the corporate profits tax rate from 48% to 34%
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