If the Real Interest Rate in the Economy Is I

question 65

Multiple Choice

If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then, other things equal,

• A) more investment will be forthcoming when i exceeds r.
• B) less investment will be forthcoming when r rises.
• C) r will fall as more investment is undertaken.
• D) r will exceed i at all possible levels of investment.

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Definitions:

Shareholders Approval

A formal consent given by shareholders, typically through voting, for certain actions or decisions proposed by a company's management.

Direct Purchase

The act of buying goods or services directly from the source, bypassing intermediaries.

Sweet

Usually pertaining to the taste perception of sugariness; not applicable as a key term without context. NO.

Tart

A type of baked dish usually consisting of a filling over a pastry base without a top crust, often sweetened with fruit or savory in flavor.