Which of the following will shift the investment demand curve rightward?
A)Higher interest rates
B)Gloomy sales expectations
C)A cut in corporate taxes that raises after-tax profits
D)A decrease in the marginal propensity to consume
E)An increase in aggregate income

Question

Quizplus · Accepted Answer

A cut in corporate taxes that raises after-tax profits will increase firms' expected rate of return on investment, making investment more profitable and shifting the investment demand curve rightward.

Which of the Following Will Shift the Investment Demand Curve