Which of the Following Would Cause a Rightward Shift in the Investment

question 3

Multiple Choice

Which of the following would cause a rightward shift in the investment demand curve?

• A) An increase in the interest rate.
• B) An increase in the rate of capacity utilization.
• C) An increase in households' disposable income;
• D) An increase in business taxes.

---

Definitions:

Present Value

The current worth of a future sum of money or flow of cash flows given a specified rate of return.

Present Value

A financial concept that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

A financial term denoting the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.