The Investment Function Will Shift When There Is a Change

question 232

Multiple Choice

The investment function will shift when there is a change in

• A) the interest rate.
• B) firms' profit expectations.
• C) the cost of borrowing.
• D) the opportunity cost of retained earnings.

---

Definitions:

Interest Groups

Organizations formed to influence public policy and decision-making in favor of their members' or supporters' interests.

Technological Commodity

A product or device that is widely available and used, deriving its value from its utility and technological features.

Environmental Racism

The practice of disproportionately situating hazardous waste sites, pollution-emitting industries, or landfills near communities of color or economically disadvantaged groups.

Disadvantaged Racial Minorities

Racial or ethnic groups that have historically faced social, economic, and political disadvantages and discrimination.