Refer to the above information. The expected rate of return curve:
A)shows a direct relationship between the interest rate and investment.
B)is also the investment demand curve.
C)is indeterminant.
D)implies a direct (positive) relationship between the interest rate and the level of GDP.
Answer:B
Refer to the above information. The expected rate of return curve:
A)shows a direct relationship between the interest rate and investment. B)is also the investment demand curve. C)is indeterminant. D)implies a direct (positive) relationship between the interest rate and the level of GDP.