The Investment-Demand Curve Will Shift to the Left

question 140

Multiple Choice

The investment-demand curve will shift to the left:

• A)if firms plan to increase their inventories.
• B)if firms plan to decrease their inventories.
• C)if firms expect an increase in their sales.
• D)if firms expect no change in their sales.

---

Definitions:

Investee

An entity in which an investor holds a minority stake, without controlling interest.

Decision-making Authority

The power or right to make decisions regarding policies, procedures, or spending in a business or organization.

Agent

A party primarily engaged to act on behalf of and for the benefit of another party or parties (the principal(s)) which therefore does not control the investee when it exercises its decision-making authority.

Variable Returns

Returns from an investment that fluctuate over time due to market conditions or other factors.