Multiple Choice
Use the following to answer questions .
Exhibit: Investment Projects
-(Exhibit: Investment Projects) If the market interest rate falls from 15% to 11%, what happens to the quantity of investment demanded?
A) It decreases by $2,200 because investment is now less profitable.
B) It decreases by $1,000 because investment is now less profitable.
C) It increases by $200 because investment is now more profitable.
D) It increases by $2,200 because investment is now more profitable.
Correct Answer:
Verified
Correct Answer:
Verified
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