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2.2.3 Investment (I)

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Question 7

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

A

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

B

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

C

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

D

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

Markscheme

2.2.3 Investment (I) Questions

  1. A Level
  2. /Economics
  3. /2.2.3 Investment (I)

30 exam-style questions on Edexcel A A Level Economics 2.2.3 Investment (I). Each one has a worked solution and a mark scheme showing where the marks go.

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