The initial impact of the repeal of an investment tax credit is to shift
A)aggregate demand right.
B)aggregate demand left.
C)aggregate supply right.
D)aggregate supply left.

Question

Quizplus · Accepted Answer

The repeal of an investment tax credit would increase the cost of investment, ultimately reducing the amount of aggregate demand in the economy. This reduction in demand would shift the aggregate demand curve to the left.

The Initial Impact of the Repeal of an Investment Tax