Which of the Following Will Cause the Investment Function to Shift

question 78

Multiple Choice

Which of the following will cause the investment function to shift upward?

• A) A decrease in government subsidies to businesses
• B) An increase in business profits
• C) A decline in capacity utilization
• D) Expectations of higher business taxes
• E) An increase in the market rate of interest

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Definitions:

Rate Of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Lengthy Time Period

An extended duration that encompasses a significant amount of time, often used in the context of planning, projects, or goals.

Diverse Set

A collection with a variety of distinct elements or members, often referring to a group of people with differing characteristics.

Stocks

Financial instruments representing ownership in a company, entitling the holder to a share of the corporation's assets and profits.