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Imagine an Investment Demand Curve That Shows That, If the Market

Question 51

Multiple Choice

Imagine an investment demand curve that shows that, if the market interest rate is 4 percent, the quantity of investment demanded is $500 billion. Then, if the market rate rises to 5 percent, the most likely result is that the quantity of investment demanded


A) does not change
B) rises
C) declines
D) rises then falls
E) It is not possible to answer without seeing the actual curve

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