A decrease in interest rates will
A) shift the investment function relating planned investment to the interest rate to the left.
B) be a movement along the investment function relating planned investment to the interest rate.
C) shift the investment function relating planned investment to the interest rate to the right.
D) have no impact on the investment function relating planned investment to the interest rate.
B
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An effort by the Fed to reduce aggregate demand may be thwarted because
A) investment could remain the same or increase because of optimistic expectations by businesses about the future of the economy. B) investment and interest rates are positively related. C) investment could fall because of pessimistic expectations. D) taxes may have been increased.
One rationale for government involvement in health care markets is that government involvement is necessary to prevent the spread of contagious diseases, which can be a type of externality
Which of the following is not an example of a public health externality? a. The provision of vaccinations against communicable diseases. b. The provision of clean drinking water to prevent the spread of water-borne diseases. c. The elimination of pools of standing water to help prevent the spread of malaria. d. The provision of drugs to help control cholesterol, a primary factor in heart disease.