The diagram below shows a firm's demand for its units of capital-coin- operated coffee machines. The firm places its machines in universities and colleges across Canada.
FIGURE 15- 1
-Refer to Figure 15- 1. One possible explanation for a shift of the firm's investment demand curve from I0 to I2 is
A) an increase in the expected MRP of the coffee machines.
B) an increase in the interest rate.
C) a technological improvement that reduces the cost per cup of coffee.
D) a decrease in the interest rate.
E) demographic changes that lead to a reduction in the growth rate of the student population at universities.
Correct Answer:
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