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Why does a downshift of the consumption schedule typically involve an equal upshift of the saving schedule? What is the exception to this relationship? In what direction will each of the following occurrences shift the investment demand curve, other things equal?

a An increase in unused production capacity occurs
b Business taxes decline
c The costs of acquiring equipment fall
d Widespread pessimism arises about future business conditions and sales revenues
e A major new technological breakthrough creates prospects for a wide range of profitable new products.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947874

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