Use the Following to Answer Questions

question 6

Multiple Choice

Use the following to answer questions .
Exhibit: Investment Projects

-(Exhibit: Investment Projects) If the market interest rate declines from 15% to 13%, what happens to the quantity of investment demanded?

• A) It decreases by $2,200 because investment is now less profitable.
• B) It decreases by $1,000 because investment is now less profitable.
• C) It increases by $200 because investment is now more profitable.
• D) It increases by $2,200 because investment is now more profitable.

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