Which of the Following Statements Is True Regarding Interest Rates

Multiple Choice

Which of the following statements is true regarding interest rates and quantity of investment demanded?

A) Higher rates of interest raise the opportunity cost of investment and therefore increase the quantity of investment demanded.
B) Higher rates of interest lower the opportunity cost of investment and therefore reduce the quantity of investment demanded.
C) Higher rates of interest raise the opportunity cost of investment and therefore reduce the quantity of investment demanded.
D) Higher rates of interest lower the opportunity cost of investment and therefore increase the quantity of investment demanded.