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-Refer to the Above Diagram

question 150

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  -Refer to the above diagram.Initially assume that the investment demand curve is I<sub>d1</sub>.Which of the following effects of a budget deficit might shift the investment demand curve from I<sub>d1</sub> to I<sub>d2</sub>,wholly offsetting any crowding-out effect? A)  an improvement in profit expectations by businesses B)  a decrease in saving C)  a decline in the interest rate D)  an increase in the marginal propensity to consume
-Refer to the above diagram.Initially assume that the investment demand curve is Id1.Which of the following effects of a budget deficit might shift the investment demand curve from Id1 to Id2,wholly offsetting any crowding-out effect?


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