Other things equal, investment spending will increase when:
a. interest rates are lowered.
b. firms operate under full capacity.
c. corporate taxes are increased.
d. capacity utilization is low.
e. the cost of capital rises.
Question 2
Macroeconomics primarily examines:
a. the behavior of individual households and firms.
b. how prices are determined within individual markets.
c. the output levels that maximize the profits of business firms.
d. broad issues such as national output, employment and inflation.
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