The Investment-Demand Curve Will Shift to the Left as a Result

question 25

Multiple Choice

The investment-demand curve will shift to the left as a result of:

• A)an increase in the excess productive capacity available in industry.
• B)a decrease in business taxes.
• C)increased business optimism with respect to future economic conditions.
• D)a decrease in labor costs.

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Definitions:

Debt Investments

Financial assets involving the loan of money from an investor to a borrower, often in the form of bonds or loans.

Available-For-Sale Securities

Financial assets that are not classified as held-to-maturity or trading securities, and can be sold in the market.

Stock Investments

Refers to the purchasing of shares in companies with the expectation of earning a return through dividends, share price appreciation, or both.

Loss on Sale

The financial loss incurred when the selling price of an asset is less than its carrying value on the balance sheet.