Which of the following is likely to be an effect of an increase in acquisition, maintenance, and operating costs on the investment demand curve of an economy?
A)A leftward shift of the curve
B)A rightward shift of the curve
C)An upward movement along the curve
D)A downward movement along the curve

Question

Quizplus · Accepted Answer

An increase in acquisition, maintenance, and operating costs would increase the cost of production and reduce the profitability of investment projects. As a result, investors would be less willing to invest at any given expected rate of return, leading to a leftward shift of the investment demand curve.

Which of the Following Is Likely to Be an Effect