The investment demand curve suggests:
A)that changes in the real interest rate will not affect the amount invested.
B)there is an inverse 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 a direct relationship between the real rate of interest and the level of investment spending.
Answer:B
The investment demand curve suggests:
A)that changes in the real interest rate will not affect the amount invested. B)there is an inverse 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 a direct relationship between the real rate of interest and the level of investment spending.