Which factor is most likely to lead to a rise in investment?

Show Answers

A reduction in interest ratesA decline in the country's income levelA fall in the marginal propensity to consumeAn increase in the amount of money withdrawn from the economy

Explanation

Investment typically increases when the marginal propensity to consume decreases, as more income is saved and available for investment. Lower interest rates, reduced national income, or higher withdrawals generally discourage investment.