Which of the following will shift the investment demand curve rightward?
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 2
Solar vehicles that operate on photovoltaic cells:
a. are economically efficient today as compared to gasoline vehicles.
b. are not economically efficient because they create greater negative externalities than gasoline vehicles.
c. are not economically efficient even though they create fewer negative externalities than gasoline vehicles.
d. should be subsidized by government so that they cost less than gasoline automobiles.
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