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.

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Definitions:

Promised Benefit

An expected or assured advantage that is to be delivered as a result of an action or a transaction.

Resistance

The act of opposing or standing against certain ideas, changes, or directives, often seen in organizational or social contexts.

Persuade

The act of convincing someone to do or believe something through reasoning or argument.

Request

The act of politely or formally asking for something.