Which of the following would shift the investment demand curve leftward?
a. Lower operating costs for capital goods
b. Higher business taxes on capital goods
c. Higher expected rates of return on investment in capital goods
d. Lower maintenance costs for capital goods
b. Higher business taxes on capital goods
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According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A) firms' average inflation adjusted per-unit costs of production B) anticipated future inflation C) an unexpected increase in aggregate demand D) all of the above
Resources are used only in the production of goods, not services
a. True b. False
Paul the Pizza Man used a new method to streamline pizza assembly that allowed him to make more pizzas and thus make greater revenue. Paul began to earn positive economic profits. In the long run, Paul will
a. continue to earn economic profits b. earn zero economic profits because other pizza places will begin to use his system c. continue to earn economic profits because Paul will get a patent on his new method d. earn negative economic profits because innovators always loose money e. earn zero economic profits because the government does not allow monopolistically competitive firms to earn economic profits
The marginal utility of a unit of good X
a. is always greater than the total utility of X. b. is always less than the average utility of X. c. generally depends on how much X the consumer already has. d. is always equal to the price of X.