All of the Following Shifts the Investment Demand Curve Except

question 77

Multiple Choice

All of the following shifts the investment demand curve except

• A) an increase in the capital gains tax rate.
• B) monetary policy that lowers the interest rate.
• C) fiscal policy that affect the cost of holding capital, for example allowing accelerated depreciation.
• D) an increase in the capacity utilization rate of capital.

---

Definitions:

Foot-In-The-Door Phenomenon

The foot-in-the-door phenomenon is a psychological tactic involving getting someone to agree to a small request to increase the chances they will agree to a larger request later.

Role Playing

A method for learning or therapeutic intervention where individuals act out roles in a controlled setting to gain insight into themselves or others.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal disposition and traits when interpreting others' behavior.

Compassionate Personality

A compassionate personality is characterized by a habitual inclination towards empathy and concern for others, and a desire to help those in suffering.