Figure 8-1

-Refer to Figure 8-1.Which of the following could NOT shift the investment demand curve from ID₀ to ID₁?
A)higher real interest rates
B)lower business taxes
C)the discovery of new, profitable investment opportunities
D)inventories falling below desired levels

Question

Figure 8-1
 
-Refer to Figure 8-1.Which of the following could NOT shift the investment demand curve from ID₀ to ID₁?
A)higher real interest rates 
B)lower business taxes 
C)the discovery of new, profitable investment opportunities 
D)inventories falling below desired levels

Quizplus · Accepted Answer

Higher real interest rates would not shift the investment demand curve from ID₀ to ID₁; instead, they would cause a movement along the curve, typically reducing the quantity of investment demanded.

Figure 8-1 -Refer to Figure 8-1.Which of the Following Could NOT Shift