Other things remaining the same, the greater the expected profit from capital,
A) the less the amount of investment.
B) the steeper is the investment demand curve.
C) the flatter is the investment demand curve.
D) the greater the amount of investment.

Question

Quizplus · Accepted Answer

With all other things remaining the same, if the expected profit from capital is greater, businesses will want to invest more to earn higher profits. Therefore, the greater the expected profit from capital, the greater the amount of investment.

Other Things Remaining the Same, the Greater the Expected Profit