Figure 10-3 -Refer to Figure 10-3.Which of the Following Is Consistent with Is

Multiple Choice

Figure 10-3
-Refer to Figure 10-3.Which of the following is consistent with the graph depicted above?

A) Taxes are changed so that real interest income is taxed rather than nominal interest income.
B) An expected recession decreases the profitability of new investment.
C) The government runs a budget deficit.
D) Technological change increases the profitability of new investment.