Other things equal, a 10 percent decrease in corporate income taxes will:
A)decrease the market price of real capital goods.
B)have no effect on the location of the investment-demand curve.
C)shift the investment-demand curve to the right.
D)shift the investment-demand curve to the left.
Answer:C
Other things equal, a 10 percent decrease in corporate income taxes will:
A)decrease the market price of real capital goods. B)have no effect on the location of the investment-demand curve. C)shift the investment-demand curve to the right. D)shift the investment-demand curve to the left.