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.

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Definitions:

Materialism

Materialism is a philosophical stance or a way of life that holds material possessions, physical comfort, and wealth as the highest values or primary goals.

Self-interest

The consideration of one's own advantage or well-being before that of others.

Primed

The cognitive process by which exposure to a stimulus influences response to a later stimulus, making it more likely to occur.

Serial Position Effect

A memory effect where items at the beginning and end of a list are more easily recalled than those in the middle.