If the stock of available capital in the economy is running too low, then the:
A) Investment schedule will shift upward
B) Investment schedule will shift downward
C) Consumption schedule will shift upward
D) Consumption schedule will shift downward

Question

Quizplus · Accepted Answer

When the stock of available capital in the economy is running low, investment becomes more costly and less attractive, leading to a decrease in planned investment. This results in a shift downward in the investment schedule.

If the Stock of Available Capital in the Economy Is