Which of the following is most likely to cause a rightward shift of the investment demand curve?
A) an increase in income
B) a decrease in the market interest rate
C) an improvement in business expectations
D) an increase in the market rate of interest
E) a decrease in income

Question

Quizplus · Accepted Answer

An improvement in business expectations would increase the expected rate of return on investment, which would lead to an increase in investment at each interest rate level, causing a rightward shift of the investment demand curve. The other choices would lead to a leftward shift of the curve.

Which of the Following Is Most Likely to Cause a Rightward