MCQOPTIONS
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| 1. |
The investment demand curve suggests: |
| A. | that changes in the real interest rate will not affect the amount invested. |
| B. | there is a direct relationship between the real rate of interest and the level of investment spending. |
| C. | that an increase in business taxes will tend to stimulate investment spending. |
| D. | there is an inverse relationship between the real rate of interest and the level of investment spending. |
| Answer» E. | |