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 interest rate.
B) a technological improvement that reduces the cost per cup of coffee.
C) a decrease in the interest rate.
D) an increase in the expected MRP of the coffee machines.
E) demographic changes that lead to a reduction in the growth rate of the student population at universities.
Correct Answer:
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