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.