What Would Result from a Decrease in the Investment Demand

question 43

Multiple Choice

What would result from a decrease in the investment demand curve?

• A)an increase in the dollar amount of savings
• B)a decrease in real interest rates
• C)an increase in the dollar amount of investment
• D)an increase in real interest rates

---

Definitions:

Financial Well-being

A state where an individual has achieved a satisfactory level of financial security and freedom to make choices that allow them to enjoy life.

Short Run

A time period in which at least one input (e.g., plant size, machinery) is fixed and cannot be varied by the firm.

Economic Profit

The divergence between an organization's total turnover and its entire liabilities, including both evident and underlying costs.

Minimum Average Variable Cost

The lowest point at which a company can produce its product with the least average variable costs involved.