Given the Expected Rate of Return on All Possible Investment

Multiple Choice

Given the expected rate of return on all possible investment opportunities in the economy, a(n)

A) increase in the real rate of interest will tend to increase the level of investment.
B) decrease in the real rate of interest will tend to increase the level of investment.
C) decrease in the real rate of interest will tend to decrease the level of investment.
D) change in the real interest rate will have no impact on the level of investment.