The Investment Demand Curve Suggests

question 67

Multiple Choice

The investment demand curve suggests:

• A) that changes in the real interest rate will not affect the amount invested.
• B) there is an inverse relationship between the real rate of interest and the level of investment spending.
• C) that an increase in business taxes will tend to stimulate investment spending.
• D) there is a direct relationship between the real rate of interest and the level of investment spending.

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Definitions:

Dependent Variable

In research, the variable that is measured or observed to assess the effect of the independent variable.

Causation

The relationship between cause and effect where one event (the cause) makes another event happen (the effect).

Meta-Analysis

A statistical analysis that combines the results of multiple scientific studies to arrive at a conclusion that is statistically stronger than any single study due to increased numbers of subjects.

Statistical Technique

A method or procedure applied to data collection, analysis, interpretation, and presentation in statistical studies.