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.