Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 1 ?
A. A falling real interest rate
B. A rising real interest rate
C. Increasing operating costs for capital goods
D. Decreasing operating costs for capital goods
C. Increasing operating costs for capital goods
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What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if a low-cost process for making cotton cloth wrinkle-free is developed?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see?
A) an increase in the value of the rupee relative to the dollar B) a decrease in the prices of Indian products C) a decrease in the quantity demanded of Indian products relative to Canadian products D) an increase in the quantity demanded of Indian products relative to Canadian products