A technological change that positively affects business expectations will _____
A) cause a rightward shift of the investment demand curve.
B) cause a leftward shift of the investment demand curve.
C) cause an upward movement along the investment demand curve.
D) cause a downward movement along the investment demand curve.
E) make the investment demand curve slope upward.

Question

Quizplus · Accepted Answer

A technological change that positively affects business expectations will increase the profitability of investments, and thus, cause a rightward shift of the investment demand curve. This means that at any interest rate, the quantity of investment demanded will increase.

A Technological Change That Positively Affects Business Expectations Will _____