Other things equal, a 10 percent decrease in corporate income taxes will:

A. decrease the market price of real capital goods.
B. have no effect on the location of the investment-demand curve.
C. shift the investment-demand curve to the right.
D. shift the investment-demand curve to the left.

C. shift the investment-demand curve to the right.

Economics

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In monopolistic competition, firms do not have to produce innovative products because they have downward-sloping demand curves

Indicate whether the statement is true or false

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The economy’s self-correcting mechanism ensures that neither recessionary nor inflationary gaps will be eliminated eventually.

Answer the following statement true (T) or false (F)

Economics