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    Macroeconomics Study Set 39
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    Exam 17: The Theory of Investment
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    If Real Interest Rates Increase, What Will Happen To: A Business
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If Real Interest Rates Increase, What Will Happen To: A Business

Question 48

Question 48

Essay

If real interest rates increase, what will happen to: a. business fixed investment?
b. residential investment?
c. inventory investment?

Correct Answer:

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a. Increases in the real interest rate i...

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