The real interest rate increases and investment increases. _____ a. The real interest rate increases and investment increases b. The real interest rate decreases and investment decreases. c. The real interest rate increases and investment decreases. d. Cannot be determined from the given information

The real interest rate increases and investment increases. _____ a. The real interest rate increases and investment increases b. The real interest rate decreases and investment decreases. c. The real interest rate increases and investment decreases. d. Cannot be determined from the given information

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 3.6P

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Similar questions

Assume that consumption decreases, when interest rates increase. If there is a technological advance that leads to an increase in investment demand, then: A. investment increases and the interest rate rises. B. investment and the interest rate are both unchanged. C. investment is unchanged and the interest rate rises. D. investment decreases and the interest rate rises.
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