Which of the Following Would Tend to Shift the Investment

question 115

Multiple Choice

Which of the following would tend to shift the investment function upward?

• A)higher interest rates
• B)gloomy sales expectations
• C)a cut in corporate taxes that raises after-tax profits
• D)a decrease in the marginal propensity to consume
• E)an increase in aggregate income

---

Definitions:

Cash Refund

A repayment to a customer in cash for the return of products or for rebate claims.

General Journal

A primary accounting record used to record all non-specific financial transactions of a business in chronological order.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services, collected by the retailer at the point of sale.

Full Payment

Completion of payment for a product or service in total, settling all owed amounts without remaining balances.