Which of the following would cause a leftward shift in the investment function?
A) technological progress
B) a reduction in the rate of interest
C) optimistic expectations about business conditions
D) an increase in business taxes
Answer: D) an increase in business taxes
Economics
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The rate of return that households expect on their savings is determined by:
A) exchange rates. B) interest rates. C) government expenditure. D) tax rates.
Economics
Suppose a bank has the following balance sheet:
Assets Liabilities Reserves $14,000 Deposits $100,000 Loans $90,000 Net Worth $4,000 If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?
Economics