Which of the Following Would Be Most Likely to Cause

question 167

Multiple Choice

Which of the following would be most likely to cause a rightward shift of the investment demand curve?

• A)an increase in income
• B)a decline in the market interest rate
• C)an improvement in business expectations
• D)an increase in the market rate of interest
• E)a decrease in income

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Definitions:

Profit Per Unit

The amount of income earned from selling one unit of a product after deducting the costs associated with its production and sale.

Profit-Maximizing Output

The level of production where a firm achieves the highest possible profit, where marginal cost equals marginal revenue.

Lawn-Mowing

The action of cutting the grass in a yard or garden using a machine known as a lawnmower.

Optimal Output

The level of production that maximizes a firm's profit or minimizes its cost, given its production function and market conditions.