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What Causes Investments to Increase When the Production in the Economy

Question 151

Multiple Choice

What causes investments to increase when the production in the economy is below full employment?


A) When the economy is below full employment, the price level drops, resulting in a decrease in the demand for money and a decrease in interest rates.
B) When the economy is below full employment, the price level rises, resulting in an increase in the demand for money and a decrease in interest rates.
C) When the economy is below full employment, the price level drops, resulting in an increase in the demand for money and an increase in interest rates.
D) When the economy is below full employment, the price level drops, resulting in a decrease in the demand for money and an increase in interest rates.

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