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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Definitions:

Supervisors

Individuals who oversee the work of others, ensuring tasks are completed efficiently and effectively within a company or department.

Notes Payable

A liability on a company's balance sheet representing amounts owed to creditors or banks, typically due for payment within one year or less.

Long-Term Financing

A method of financing that is typically used for investments or purchasing assets that have a lifespan of more than a year.

Human Resources Department

The division within a business that manages employee relations, recruitment, training, and benefits.