Which of the following would tend to shift the investment function upward?
A)higher interest rates
B)gloomy sales expectations
C)a cut in corporate taxes that raises after-tax profits
D)a decrease in the marginal propensity to consume
E)an increase in aggregate income

Question

Quizplus · Accepted Answer

A cut in corporate taxes that raises after-tax profits would tend to increase the expected return on investment, leading to an increase in the investment function and an upward shift.

Which of the Following Would Tend to Shift the Investment