The investment demand slopes downward and to the right because lower real interest rates:
A)expand consumer borrowing, making investments more profitable.
B)boost expected rates of returns on investment.
C)enable more investment projects to be undertaken profitably.
D)create tax incentives to invest.
Answer:C
The investment demand slopes downward and to the right because lower real interest rates:
A)expand consumer borrowing, making investments more profitable. B)boost expected rates of returns on investment. C)enable more investment projects to be undertaken profitably. D)create tax incentives to invest.