Refer to the diagram. Initially assume that the investment demand curve is ID 1 . Which of the following effects of financing a large public debt might shift the investment demand curve from ID 1 to ID 2 , wholly offsetting any crowding-out effect?





A.  An improvement in profit expectations by businesses.

B.  A decrease in saving.

C.  A decline in the interest rate.

D.  An increase in the marginal propensity to consume.

A.  An improvement in profit expectations by businesses.

Economics

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a. true b. false

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Explain how continuing technical progress may cause the price of scarce, exhaustible resources to fall over time

What will be an ideal response?

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