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.

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Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, effectively lowering the overall tax liability.

Ordinary Income

Income earned from basic sources such as wages, salaries, commissions, and interest, subject to standard tax rates.

Defined Contribution Plan

A type of retirement plan where the amount contributed is specified, but the future benefit amount is not guaranteed, depending on investment returns.

Risk-free Return

Risk-free return refers to the theoretical return on investment with zero risk, representing the return on the safest assets.