Multiple Choice
If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then, other things equal,
A) investment will take place until i and r are equal.
B) investment will take place until r exceeds i by the greatest amount.
C) r will rise as more investment is undertaken.
D) i will fall as more investment is undertaken.
Correct Answer:
Verified
Correct Answer:
Verified
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