Which of the following would be most likely to cause a rightward shift of the investment demand curve?
A)an increase in income
B)a decline in the market interest rate
C)an improvement in business expectations
D)an increase in the market rate of interest
E)a decrease in income

Question

Quizplus · Accepted Answer

An improvement in business expectations would make businesses more optimistic about investment opportunities and lead to an increase in the demand for investment, causing a rightward shift of the investment demand curve. An increase in income, a decline in the market interest rate, and a decrease in income would all lead to an increase in the quantity demanded of investment but not a shift of the curve. An increase in the market rate of interest would result in a leftward shift of the investment demand curve.

Which of the Following Would Be Most Likely to Cause