Which of the Following Will Cause the Investment Function to Shift

question 5

Multiple Choice

Which of the following will cause the investment function to shift upward?

• A)An decrease in government subsidies to businesses
• B)An increase in business profits
• C)A decline in capacity utilization
• D)Expectations of higher business taxes
• E)An increase in the market rate of interest

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Definitions:

Antecedents

In logic and grammar, the elements that precede or serve as a condition to other elements, often referring to the first part of a conditional statement.

Disjuncts

In logic and grammar, parts of a disjunctive proposition that express alternatives, where the truth of any one implies the falsehood of the other(s).

Conjuncts

Components of a compound statement formed by the word "and" indicating all elements must be true.

Disjunction

A logical operation that results in true if at least one of the operands is true.