Which of the following is most likely to increase investment and, as a result, increase aggregate demand? increased business taxes lower interest rates pessimistic business forecasts an increase in inventory levels
Which of the following is most likely to increase investment and, as a result, increase aggregate demand? increased business taxes lower interest rates pessimistic business forecasts an increase in inventory levels
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 2SQP
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![Which of the following is most likely to increase investment and, as a result, increase aggregate demand?
increased business taxes
lower interest rates
pessimistic business forecasts
an increase in inventory levels](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff45fa557-a182-48a2-a718-8b51d321bd94%2F4a591a9f-67ae-45a7-8625-a616fae51226%2Faya4bwc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following is most likely to increase investment and, as a result, increase aggregate demand?
increased business taxes
lower interest rates
pessimistic business forecasts
an increase in inventory levels
![What could potentially prevent or offset a reduction in LRAS due to a reduction in the working-age population in a
country?
decreasing capital investment
increasing business taxes
taking young workers out of school and putting them immediately to work
increasing the training and education levels of the workforce](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff45fa557-a182-48a2-a718-8b51d321bd94%2F4a591a9f-67ae-45a7-8625-a616fae51226%2Fm26pyc7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What could potentially prevent or offset a reduction in LRAS due to a reduction in the working-age population in a
country?
decreasing capital investment
increasing business taxes
taking young workers out of school and putting them immediately to work
increasing the training and education levels of the workforce
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