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 a rightward shift in the investment demand curve, as firms would want to invest more to take advantage of the increased productivity and potential profits. The other options would not necessarily result in a shift in the investment demand curve or would result in a leftward shift (such as a decrease in the interest rate, which would reduce the return on investment and potentially lead to lower levels of investment).

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