The Investment-Demand Curve Suggests

question 17

Multiple Choice

The investment-demand curve suggests:

• A)that the amount invested will not be affected by changes in the real interest rate.
• B)an inverse relationship between the real rate of interest and the level of investment spending.
• C)that an increase in business taxes will tend to stimulate investment spending.
• D)a direct relationship between the real rate of interest and the level of investment spending.

---

Definitions:

Caregiving Behaviors

Actions performed to provide support and meet the physical or emotional needs of others.

Lorenz

Konrad Lorenz, an Austrian zoologist, ethologist, and ornithologist known for his foundational work in the study of animal behavior.

Equilibration

The main source of development, consisting of a process of achieving a balance between the child’s present understanding and the child’s new experiences.