Question

all of the following can cause the investment function to shift except a. a change in productive technology. b. business expectations. c. a change in business taxes. d. a change in the rate of interest.

Answer 1

The investment function to shift except business expectation.

Option B is correct.

What is investment function Class 12?

Investment function is the behaviour of investment irrespective to different levels of income/employment. In  some other words, it's  desire or willingness of producers  to invests corresponding to different levels of income.

What are the components of investment function?

The  level of investment function is based  on three factors:

(i) the investment demand of firms,

(ii) the funds available for market, and

(iii) the volume of investment goods produced.

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