17. Which of the following statements are correct? A. An increase in the DJIA wo

Question

17. Which of the following statements are correct?

A. An increase in the DJIA would increase household wealth, which will
result in more household spending and thus a decrease in Yd.
B. An increase in inflation will lower the real value of wealth and lower
consumption thus reducing Yd.
C. An acceleration in depreciation write-offs will result in tax savings
accruing to businesses sooner. And the present value of the ENR
stream will rise and expected rates of profit will likewise rise, resulting
in an increase in investment spending and Yd will decrease.
D. all of the above are correct.
E. None of the above is correct.

Explanation / Answer

D. all of the above are correct.

All of the three statements are correct.

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