If We Observe That Interest Rates Rise but Real Investment

question 39

Multiple Choice

If we observe that interest rates rise but real investment spending still increases, what must have happened to the function relating investment to the interest rate?

• A) It shifted to the right.
• B) It shifted to the left.
• C) There was a movement up the function relating investment to the interest rate.
• D) There was a movement down the function relating investment to the interest rate.

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