Which of the following will cause the investment function to shift upward?
a. A decrease in government subsidies to businesses
b. An increase in business profits
c. A decline in capacity utilization
d. Expectations of higher business taxes
e. An increase in the market rate of interest
Question 2
Scarcity:
a. is only a problem in communist countries.
b. is a problem in both communist and socialist countries, but not in market economies.
c. does not exist in wealthy countries.
d. will never be eradicated because humans develop new wants as productive capabilities improve.
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