The investment demand curve will shift to the right as a result of a(n):
a. Decrease in the acquisition and maintenance cost of capital goods
b. Increase in the excess productive capacity available in the industry
c. Increase in taxes businesses pay to government
d. Decrease in the confidence of business leaders about the economy
Answer: a. Decrease in the acquisition and maintenance cost of capital goods
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Regarding unemployment, the classical model implies that
A) unemployment always exists. B) unemployment cannot exist. C) voluntary unemployment is zero, but involuntary unemployment often is fairly high. D) only voluntary unemployment exists.
The average total cost curve
a. is downward sloping at all levels of output b. is downward sloping when marginal costs are decreasing and upward sloping when marginal costs are increasing c. is upward sloping when marginal costs are decreasing and downward sloping when marginal costs are increasing d. does not vary with output
The output of goods and services produced in the United States has grown on average 3 percent per year since 1965
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying figure. Moving from demand curve D1 to demand curve D2 illustrates a(n):
A. decrease in demand. B. decrease in quantity demanded. C. increase in demand. D. increase in quantity demanded.