Refer to the Graph Above

question 98

Multiple Choice

Refer to the graph above. Which of the following would shift the investment demand curve from ID₂ to ID₃?

• A) Greater inventories of capital goods
• B) Higher business taxes on capital goods
• C) A more rapid rate of technological progress
• D) Lower expected rates of return on investment in capital goods

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Definitions:

FOB Shipping Point

A shipping term indicating that the buyer takes responsibility for loss or damage once the goods are shipped, and pays the shipping cost.

Terms

Conditions that are agreed upon in a financial or business arrangement.

Merchandise Inventory

The total value of a company's goods that are available for sale at the end of an accounting period.

Cash

Money in the form of coins or banknotes, especially that owned by a person or organization.