Consider Desired Investment in the Simple Macro Model

Multiple Choice

Consider desired investment in the simple macro model.Other things being equal,higher real interest rates tend to

A) reduce every component of desired investment expenditure except residential housing.
B) reduce every component of desired investment expenditure except inventories.
C) reduce every component of desired investment expenditure except plant and equipment.
D) increase every component of desired investment expenditure.
E) reduce every component of desired investment expenditure.