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In each of the following occurrences will the investment demand curve shift to the right, to the left or not shift at all, other things
In each of the following occurrences will the investment demand curve shift to the right, to the left or not shift at all, other things equal?
a) Widespread pessimism arises about future business conditions and sales revenues.
b) Interest rates increase.
c) Corporate profit tax rate is increased.
Answers (include explanation):
Shift left, or shift right, or no shift
Explanation
a)
b)
c)
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