If businesses feel more optimistic about the state of the economy, then this change is likely to:

Question

Quizplus · Accepted Answer

When businesses feel more optimistic about the state of the economy, they are more likely to invest in new projects and expand their operations. This increase in investment demand will cause a rightward shift in the investment demand curve, as businesses demand more investment at every interest rate level.

If Businesses Feel More Optimistic About the State of the Economy