Interest rates and investment move in the same direction when demand shifts toward ________-lived equipment,producing a ________ shift in the IS curve.

Name: Interest rates and investment move in the same direction when demand shifts toward ________-lived equipment,producing a ________ shift in the IS curve.
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Question

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When demand shifts toward shorter-lived equipment, businesses are likely to increase investment due to lower interest rates, causing a rightward shift in the IS curve.

Interest Rates and Investment Move in the Same Direction When