If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:
A)r falls.
B. i is greater than r.
C. r is greater than i.
D. i rises.
Answer:C
If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:
A)r falls. B. i is greater than r. C. r is greater than i. D. i rises.