Question #310736

All of the following will shift the investment demand curve to the right




EXCEPT




A. A decrease in the corporate income taxes




B. An increase in the productivity of new capital




C. An increase in real interest rates




D. An increase in corporate profits

Expert's answer

The correct answer is;

C. An increase in real interest rates


Since increases in interest rates tend to discourage investment, the is because investment has a higher opportunity cost.


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