An increase in optimism about the strength of the economy will
A)cause the investment share line to shift to the left.
B)cause a leftward movement along the investment share line.
C)have no effect on the investment share line.
D)cause the investment share line to shift to the right.
E)cause a rightward movement along the investment share line.

Question

Quizplus · Accepted Answer

An increase in optimism about the strength of the economy will increase the likelihood of investment, causing the demand for funds to increase. This will result in a rightward shift of the investment share line.

An Increase in Optimism About the Strength of the Economy