Which of the following will increase investment spending

A) More optimistic business expectations

B) An increase in interest rates

C) Ann increase in business taxes

D) A decrease in capacity utilization

E) All of the above

E

Explanation:

All the suggested options can increase investment spending

Investment spending is the money spent towards business expansion in the area of acquiring capital goods such as plant and machinery or goods used in the production like the raw materials.

Optimistic business decision : Leads to more investment in potential business opportunities

Increase in interest rates : As funds are borrowed to finance investment, increase interest rate will increase spending.

Increase in business taxes : This means that companies will have to pay more on taxes

Decrease in capacity utilization : This will lead to the acquisition of more machinery and investment spending increase