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QUESTION 12 ID ID 2 ID Investment 0 In the accompanying graph, which of the following would shift the investment demand curve from ID2 to ID3? Ogreater inventories of capital goods O a more rapid rate of technological progress O higher business taxes on capital goods lower expected rates of return on investment in capital goods

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Answer #1

a more rapid rate of technological progress

(Shift from ID2 to ID3 implies an increase in investment demand. An increase in investment demand occurs due to innovation in technology)

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