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.

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Experimental Psychology Laboratory

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University of Toronto

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