Other things equal, if the real interest rate falls and business taxes rise:
A)investment will rise until it is equal to saving.
B)we will be uncertain as to the resulting change in investment.
C)we can be certain that investment will rise.
D)we can be certain that investment will fall.
Answer:B
Other things equal, if the real interest rate falls and business taxes rise:
A)investment will rise until it is equal to saving. B)we will be uncertain as to the resulting change in investment. C)we can be certain that investment will rise. D)we can be certain that investment will fall.