If the Real Interest Rate in the Economy Is I

question 24

Multiple Choice

If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then other things equal:

• A)investment will take place until i and r are equal.
• B)investment will take place until r exceeds i by the greatest amount.
• C)r will rise as more investment is undertaken.
• D)i will rise as more investment is undertaken.

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Definitions:

Establishing a Population

Involves defining and identifying the total group of individuals that share a certain characteristic or set of characteristics, for the purpose of study or observation.

Independent Variable

A variable that is the presumed cause of a particular result (see dependent variable).

Dependent Variable

The variable that is a presumed effect.

Research Question

A specific query that guides scientific or scholarly investigation, aiming to answerable inquiries based on empirical evidence and reasoned argument.