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2.2 Aggregate demand (AD)

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Question 17

Which combination of macroeconomic changes is most likely to cause a fall in the level of planned business investment in an economy?

A fall in the central bank's policy rate, a decrease in spare capacity, and an increase in corporation tax

A rise in the central bank's policy rate, an increase in spare capacity, and an increase in corporation tax

A rise in the central bank's policy rate, a decrease in spare capacity, and a reduction in corporation tax

A fall in the central bank's policy rate, an increase in spare capacity, and a reduction in corporation tax

2.2 Aggregate demand (AD) Questions

  1. A Level
  2. /Economics
  3. /2.2 Aggregate demand (AD)