A Rightward Shift of the Investment Demand Curve Might Be

question 172

Multiple Choice

A rightward shift of the investment demand curve might be caused by

• A) an increase in the price level.
• B) a decline in the real interest rate.
• C) businesses planning to increase their stock of inventories.
• D) an increase in business taxes.

---

Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of a business, such as sales and delivery of goods/services, and are reflected in the cash flow statement.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a future date.

Collections

The process of pursuing payments of debts owed by individuals or businesses, often managed by accounts receivable departments or collection agencies.

Noncash Financing

Activities that increase long-term liabilities or equity but do not involve the immediate receipt or payment of cash, such as issuing stock or converting debt to equity.