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If Businesses Expect the Economic Activity to Expand

Question 359

Multiple Choice

If businesses expect the economic activity to expand


A) the planned investment function relating investment to the interest rate will shift to the left.
B) the planned investment function relating investment to the interest rate will remain unchanged, but will move downward along the curve.
C) the planned investment function relating investment to the interest rate will steepen.
D) the planned investment function relating investment to the interest rate will shift to the right.

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