ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Changes in political priorities
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Changes in business confidence
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Legal/institutional changes
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Changes in business taxes
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Detailed explanation-1: -The correct answer is C. the growth rate of GDP relative to growth rates in other countries. All the other options do play a role in consumption. However, the growth rate of GDP relative of growth rate in other countries does not play a role in the amount of consumption spending in a local economy.
Detailed explanation-2: -The main drivers of planned investment spending are the interest rate, the expected future level of real GDP, and current production capacity.
Detailed explanation-3: -The anchoring, mental accounting, movement of prices, volume of trade and market information factors emerged as the five principal determinants of investment strategy are the major findings of the study.
Detailed explanation-4: -A. Rate of inflation. B. Rate of national income. C. Rate of interest. D. Rate of profit.