Choose the best reason for a rightward shift in the economy's investment demand curve.

Question

Quizplus · Accepted Answer

Changes in technology that improve the productivity of capital would lead to an increase in the return on investment, which would increase the demand for investment and shift the investment demand curve to the right. Options A and D relate to changes in interest rates, which affect the cost of borrowing and would not directly shift the investment demand curve. Option B relates to the concept of diminishing marginal returns, which would decrease the demand for investment and shift the curve to the left.

Choose the Best Reason for a Rightward Shift in the Economy's