Refer to the information provided in Figure 30.1 below to answer the question(s) that follow. Figure 30.1
-Refer to Figure 30.1. Suppose the economy is currently at Point B. If investors are optimistic about future growth in aggregate output, investment
A) moves to Point C.
B) moves to Point A.
C) moves to Point D.
D) stays at Point B.

Question

Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.  Figure 30.1
-Refer to Figure 30.1. Suppose the economy is currently at Point B. If investors are optimistic about future growth in aggregate output, investment
A) moves to Point C. 
B) moves to Point A. 
C) moves to Point D. 
D) stays at Point B.

Quizplus · Accepted Answer

If investors are optimistic about future growth in aggregate output, they will increase investment. This would shift the investment demand curve to the right, causing the equilibrium investment level to increase. The new equilibrium would be at Point D, where the investment demand curve intersects the savings supply curve.

Refer to the Information Provided in Figure 30