The immediate determinants of investment spending are the:
A)expected rate of return on capital goods and the real interest rate.
B)level of saving and the real interest rate.
C)marginal propensity to consume and the real interest rate.
D)interest rate and the expected price level.
Answer:A
The immediate determinants of investment spending are the:
A)expected rate of return on capital goods and the real interest rate. B)level of saving and the real interest rate. C)marginal propensity to consume and the real interest rate. D)interest rate and the expected price level.