Given the Expected Rate of Return on All Possible Investment

question 162

Multiple Choice

Given the expected rate of return on all possible investment opportunities in the economy:

• A)an increase in the real rate of interest will reduce the level of investment.
• B)a decrease in the real rate of interest will reduce the level of investment.
• C)a change in the real interest rate will have no impact upon the level of investment.
• D)an increase in the real interest rate will increase the level of investment.

---

Definitions:

Openness to Experience

A personality trait characterized by a willingness to try new things and be open to new experiences and ideas.

Personality Factor

An aspect of personality that can be measured and represents significant variation among individuals.

Narrow-Minded

Having a limited or inflexible perspective, often unwilling to consider alternative ideas or viewpoints.

Patterns of Behavior

Repeated actions or reactions that occur in a predictable manner, often based on habits, culture, or psychological conditioning.