Changes in the corporate profits tax rate will shift the investment demand curve.

Name: Changes in the corporate profits tax rate will shift the investment demand curve.
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Question

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A decrease in the corporate profits tax rate would increase profits and likely lead to an increase in investment, shifting the investment demand curve to the right. Conversely, an increase in the tax rate would decrease profits and investment, shifting the curve to the left.

Changes in the Corporate Profits Tax Rate Will Shift the Investment