Which of the Following Will Shift a Firm's Investment Demand

question 119

Multiple Choice

Which of the following will shift a firm's investment demand curve to the left?

• A) There is an excess demand in the market for skilled labor.
• B) The tax code is revised to allow firms to accelerate depreciation on their capital assets.
• C) The firm experiences a decrease in the capacity utilization rate of capital.
• D) Its current capital stock is way below its desired level.

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Definitions:

U.S. Net Capital Outflow

Represents the difference between the purchase of foreign assets by U.S. citizens and the purchase of U.S. assets by foreigners in a given period.

International Trade

The exchange of goods and services between countries.

International Finance

International finance is the study of monetary interactions that occur between two or more countries, focusing on areas such as foreign exchange markets, international monetary systems, and cross-border investment flows.

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade.