Figure 7-1
-Refer to Figure 7-1. What could have caused a movement from point D to point A?
A) An increase in the economy's general price level
B) A decrease in investment demand due to lower expected sales
C) A decrease in capital gains taxes
D) An increase in money supply that lowers interest rate

Question

Figure 7-1 
-Refer to Figure 7-1. What could have caused a movement from point D to point A?
A) An increase in the economy's general price level 
B) A decrease in investment demand due to lower expected sales 
C) A decrease in capital gains taxes 
D) An increase in money supply that lowers interest rate

Quizplus · Accepted Answer

A decrease in investment demand due to lower expected sales would lead to a movement from point D to point A, as it would reduce the overall demand in the economy, shifting the equilibrium to a lower output level.

Figure 7-1 -Refer to Figure 7-1. What Could Have Caused a Movement