Which combination of macroeconomic changes is most likely to cause a significant increase in the domestic business investment (III) component of aggregate demand?
A depreciation of the exchange rate, an increase in business confidence, and a reduction in spare capacity.
A rise in the central bank's policy interest rate, an increase in corporation tax, and a rise in the household savings ratio.
An appreciation of the exchange rate, a rise in spare capacity, and a reduction in the rate of growth of national income.
A decrease in business confidence, a rise in real interest rates, and a fall in consumer demand.
