Multiple Choice
A lower interest rate makes more investment projects profitable, meaning that:
A) there is a direct relationship between the rate of interest and the quantity of investment spending.
B) there is an inverse relationship between the rate of interest and the quantity of investment spending.
C) there is no relationship between the rate of interest and the quantity of investment spending.
D) the demand curve for investment spending is horizontal.
E) the demand curve for investment spending is vertical.
Correct Answer:
Verified
Correct Answer:
Verified
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