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Imagine a Macro Investment Demand Curve That Shows That,if the Market

Question 134

Multiple Choice

Imagine a macro 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 to $550 billion
C) declines to $450 billion
D) rises to $1 trillion
E) It is not possible to answer without seeing the actual curve

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