When is an increase in national income most likely to induce an increase in investment spending?
- Awhen firms have spare production capacity
- Bwhen firms use labour intensive production
- Cwhen the increase in income is regarded as permanent
- Dwhen the increase in income is regarded as temporary
Mark scheme
Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.
- [1] C
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