During the Great Recession of 2007-2009, the investment demand curve shifted
A)left because of very low interest rates.
B)right because of very low interest rates.
C)left because of declines in expected returns.
D)right because of reductions in tax rates.

Question

Quizplus · Accepted Answer

During the Great Recession, the investment demand curve shifted left due to declines in expected returns, as businesses anticipated lower profits and economic uncertainty reduced their willingness to invest.

During the Great Recession of 2007-2009, the Investment Demand Curve