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antoniya [11.8K]
3 years ago
14

Planned investment spending will decrease if: the interest rate rises. consumer expectations about wealth grow more optimistic.

firms expect the growth of real GDP to increase. firms are producing near full capacity.
Business
1 answer:
Dima020 [189]3 years ago
4 0

Answer:

the interest rate rises.

Explanation:

When interest rate increase, borrowing money from the banks become expensive. Individuals and companies will not be able to borrow money to finance investments as the interest rates would be discouraging. When the interest rates are high, saving with banks becomes more attractive. Interests earned of deposits become more appealing than the rate of return of an investment project.

Investments increase when the economy is doing well. If real GDP is to increase or consumers are more optimistic, it means the economy is doing well. Firms operate at near capacity if the economic conditions are favorable. In these three situations, investments will increase, not decrease.

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Answer:

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Explanation:

CPI  or consumer price index is a measure of changes in the average prices of a basket of products and services in a given time. The selected goods and services are a fair representation of consumption expenditure in the economy. Economists use the CPI as a Macroeconomic indicator of inflation.

As a measure of inflation, the CPI statistics communicate increases or decreases in the prices of goods and services in the economy. It forms a basis for policy decisions by the government that aid in the prevention of reduced purchasing power of the dollar.  CPI is all about changes in prices and nothing to do with the production of goods and services.

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3 years ago
WILL GIVE BRAINLIEST !!!!!
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Hope this helped. Have a great day!
4 0
3 years ago
Read 2 more answers
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Answer:

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