Suppose That Along the Economy-Wide Rate-Of-Return Line,the Current Interest Rate

Multiple Choice

Suppose that along the economy-wide rate-of-return line,the current interest rate of 8 percent causes a planned investment of $300 billion.Should the interest rate fall to 7 percent,the $300 billionth dollar of investment spending now generates a ________ rate of profit,which puts ________ pressure on investment.

A) positive,downward
B) positive,upward
C) negative,downward
D) negative,upward