1. Generally, plant and equipment investment spending by the business sector is impacted by which of the following factors?

		A. tax law changes which affect after tax real costs of investment.
		B. the level of interest rates in the financial markets.
		C. expected rates of return on potential investment projects available to businesses.
		D. all of the above impact plant and equipment investment spending by the business sector.
		E. none of the above impact investment spending by business.

2.

Under classical economic theory, when excess stocks of goods (inventories) accumulate in manufacturers' storage areas:

		A. national income is likely to fall.
		B. housing investment will also rise.
		C. inflation will increase.
		D. prices of goods and wages will decline.
		E. both b and c to occur.