If business executives become more optimistic about the future, we would expect that
A)the investment curve would shift outward to the right.
B)the saving function would shift up.
C)the consumption curve would shift up.
D)investment spending would decrease.

Question

Quizplus · Accepted Answer

If business executives become more optimistic about the future, they are more likely to invest in their businesses, leading to an increase in investment spending. This would shift the investment curve outward to the right.

If Business Executives Become More Optimistic About the Future, We