Srishti posted an Question
April 11, 2021 • 09:24 am 30 points
  • UGC NET
  • Economics

Which of the following will cause the investment of iemand curve to shift to the right? (a'a decrease in interest rate b) an increase in disposable income (c) a

which of the following will cause the investment of iemand curve to shift to the right? (a'A decrease in interest rate b) An increase in disposable income (c) A decrease in taxes All of the above

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  • Ravindra nath mahto best-answer

    Look at the solution.

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    Rise in the disposable income can also affect investment but not directly. Let us see how. Rise in disposable income leads to the rise in consumption. The rise in demand for consumer goods would induce investment. In this way, a rise in disposable income can shift the investment damand curve. Hope you understood now.

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