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Which of the following is not a determinant affecting business investment?Select one:a.Household disposable incomeb.Technological changec.Government policiesd.RBA monetary policy decisions

Question

Which of the following is not a determinant affecting business investment?Select one:a.Household disposable incomeb.Technological changec.Government policiesd.RBA monetary policy decisions

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Solution

Business investment is primarily influenced by factors such as the cost of capital, expected future profits, technological change, government policies, and decisions by the Reserve Bank (RBA) regarding interest rates.

Household disposable income, while it can indirectly influence business investment through its effect on consumer spending and thus potential profits, is not a direct determinant of business investment.

So, the correct answer is:

a. Household disposable income.

This problem has been solved

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