00:02
Here for the answer.
00:08
For the part a, larger business, taxes means that businesses make smaller returns after taxes.
00:19
The investment demand decreases with larger taxes and therefore the demand curve shifts to the left.
00:29
This will not shift the demand curve right.
00:34
Now for the first is for the part a will not shift the demand curve right.
00:41
Now for the part b, the expected rate of the return on capital investment is based on what the firm believes it will make in the future or investment.
00:57
If this value goes up, then executives are more optimistic about the future.
01:05
An investment demand will go up.
01:10
Therefore, this will shift the demand curve right.
01:14
In this, this will shift the demand curve right...