Other things remaining the same, the greater the expected profit,
A) the greater the amount of investment.
B) the flatter is the investment demand curve.
C) the steeper is the investment demand curve.
D) the less the amount of investment.

Question

Quizplus · Accepted Answer

If the expected profit is greater, businesses will want to invest more in order to maximize their profits. Therefore, the greater the expected profit, the greater the amount of investment.

Other Things Remaining the Same, the Greater the Expected Profit