Multiple Choice
If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then other things equal:
A) more investment will be forthcoming when i exceeds r.
B) less investment will be forthcoming when r rises.
C) r will fall as more investment is undertaken.
D) r will exceed i at all possible levels of investment.
Correct Answer:
Verified
Correct Answer:
Verified
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