Which of the following is likely to be an effect of lower business taxes 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

Lower business taxes would increase the after-tax returns on investment, which would incentivize businesses to invest more. This would shift the investment demand curve to the right.

Which of the Following Is Likely to Be an Effect