Other Things Equal, a Decrease in the Real Interest Rate

question 96

Multiple Choice

Other things equal, a decrease in the real interest rate will

• A) shift the investment demand curve to the right.
• B) shift the investment demand curve to the left.
• C) move the economy upward along its existing investment demand curve.
• D) move the economy downward along its existing investment demand curve.

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Definitions:

Histogram

A graphical representation of data using bars of different heights, where each bar groups numbers into ranges, showing the frequency of data within each range.

Observations

Individual pieces of data collected during a study or experiment.

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations, often expressed as a percentage.

Histogram

A graphical representation of the distribution of numerical data, displayed as bars representing the frequency of data within certain ranges.