Which of the following is NOT a non-interest rate determinant of investment dema

Question

Which of the following is NOT a non-interest rate determinant of investment demand.

Stock of capital goods on hand, as well as changes in Initial and operational costs of capital goods.

Changes in business taxes and planned changes in inventory levels.

Technological progress.

Changes in nominal interest rates adjusted for inflation.

Stock of capital goods on hand, as well as changes in Initial and operational costs of capital goods.

Changes in business taxes and planned changes in inventory levels.

Technological progress.

Changes in nominal interest rates adjusted for inflation.

Explanation / Answer

Change in nominal interest rates adjusted for inflation is not an non interest rate determinant of investment demand. It is an interest rate determinant of investment demand.

So, the correct answer is an option (d).

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