If Businesses Feel More Optimistic About the State of the Economy

question 203

Multiple Choice

If businesses feel more optimistic about the state of the economy, then this change is likely to

• A)cause a movement up the investment demand curve.
• B)cause a movement down the investment demand curve.
• C)shift the investment demand curve to the left.
• D)shift the investment demand curve to the right.

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Definitions:

Standard Of Living

The degree of prosperity, convenience, physical possessions, and essential needs accessible to a specific social economic group or region.

Inward-Oriented Policies

Economic strategies focusing on protecting domestic industries from foreign competition through tariffs and import quotas.

Outward-Oriented Policies

Economic policies aimed at promoting international trade by reducing trade barriers and embracing globalization to stimulate economic growth.

Growth

The increase in the economic output and productivity of a country, measured by its Gross Domestic Product (GDP) over time.