A rightward shift of the investment demand curve will:
A. Shift the investment schedule downward
B. Shift the investment schedule upward
C. Decrease the quantity of investment
D. Decrease the real rate of interest
B. Shift the investment schedule upward
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If you are offered a gamble in which you win 500 dollars 3/8 of the time and you lose 500 dollars 5/8 of the time, what is your expected payoff and your behavior given that you are a risk-lover?
A) $500, take the gamble B) -$125, take the gamble C) -$125, it is unclear what you would do without further information D) $500, decline the gamble E) -$125, decline the gamble
The price of services at Urban General falls by 10 percent
a. Quantity demanded at Urban General increases by 15.0 percent. b. Quantity demanded at Urban General increases by 1.5 percent. c. Quantity demanded at St.Elsewhere rises by 3.5 percent. d. Quantity demanded at St.Elsewhere falls by 5.0 percent. e. Quantity demanded at Urban General rises by 5.0 percent.
An attempt to use government spending to boost the economy may bring
A. deflation. B. anarchy. C. inflation. D. fiscal instability.
Investment spending in the United States tends to be unstable because:
A. expected profits are highly variable. B. capital goods are durable. C. innovation occurs at an irregular pace. D. all of these contribute to the instability.