Multiple Choice
Other things being equal, higher real interest rates tend to
A) increase every component of desired investment expenditure.
B) reduce every component of desired investment expenditure.
C) reduce every component of desired investment expenditure except plant and equipment.
D) reduce every component of desired investment expenditure except residential housing.
E) reduce every component of desired investment expenditure except inventories.
Correct Answer:

Verified
Correct Answer:
Verified
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