The Intercept of the Investment Function

Multiple Choice

The intercept of the investment function

A) tells us by how much investment spending is discouraged by a one-unit increase in the short-term, risky, nominal interest rate.
B) tells us by how much investment spending is discouraged by a one-unit increase in the long-term, risky, real interest rate.
C) tells us what the level of investment spending would be if the long-term, risky, real interest rate were 0.
D) tells us what the level of investment spending would be if the short-term, risky, nominal interest rate were 0.