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

Question

Quizplus · Accepted Answer

An increase in business taxes would reduce the after-tax return on investment and would lead to a leftward shift in the investment function.

Which of the Following Would Cause a Leftward Shift in the Investment