Which of the following will shift the investment demand curve rightward?
a. Higher interest rates
b. Gloomy sales expectations
c. A cut in corporate taxes that raises after-tax profits
d. A decrease in the marginal propensity to consume
e. An increase in aggregate income
c
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A price ceiling
A) is an illegal price. B) is the price that exists in a black market. C) is the maximum price that can legally be charged. D) Both answers A and B are correct. E) Both answers B and C are correct.
If the quantity supplied and the price change by the same percentage, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Bank reserves that exceed the reserve requirements set by the central bank are called:
A. total reserves B. legal reserves C. required reserves D. excess reserves
Under monetary neutrality, an increase in the money supply causes output to ________ and the price level to ________.
A. rise; rise B. not change; rise C. rise; not change D. not change; not change