Higher expected returns on investment will Blank______.
Multiple choice question.
decrease the demand for capital and shift the aggregate demand curve to the right
decrease the demand for capital and shift the aggregate demand curve to the left
increase the demand for capital and shift the aggregate demand curve to the left
increase the demand for capital and shift the aggregate demand curve to the righ
1 answer
The correct answer is: increase the demand for capital and shift the aggregate demand curve to the right.
Higher expected returns on investment typically encourage businesses to invest more, which increases the demand for capital. This can lead to a rightward shift in the aggregate demand curve as investment is a component of aggregate demand.
