Given the Expected Rate of Return on All Possible Investment

question 80

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 on the level of investment.
• D) an increase in the real interest rate will increase the level of investment.