Which of the Following Is True

Multiple Choice

Which of the following is true?

A) ​The fraction of their total disposable income that households spend on consumption is called the marginal propensity to consume.
B) ​As the real interest rate falls, additional projects with lower expected rates of return become profitable for firms, and the demand for investment curve shifts right.
C) ​Firms with excess inventories of finished goods have an increased incentive to invest in new capital to put those inventories to productive use.
D) ​None of the above is true.