Multiple Choice
Which of the following statements is true?
A) The observed relationship between the investment share of GDP and the real interest rate is negative, as predicted by theory.
B) There is no steady relationship between the investment share of GDP and real interest rates, contrary to what is predicted by theory.
C) The observed relationship between the investment share of GDP and the real interest rate is positive, contrary to what is predicted by theory.
D) The observed relationship between the investment share of GDP and the real interest rate is positive, as predicted by theory.
E) The observed relationship between the investment share of GDP and the real interest rate is negative, contrary to what is predicted by theory.
Correct Answer:
Verified
Correct Answer:
Verified
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