Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 27 - Basic Macroeconomic Relationships - Quick Quiz for Figure 27.5 - Page 556: 1

Answer

B. reflects an inverse (negative) relationship between the real interest rate and investment.

Work Step by Step

Choice A is incorrect because investment decreases as interest rates rise. Choice C is incorrect because the curve does not shift, but rather displays a relationship between real in terest rates and investment. Choice D is incorrect because the curve does not shift, but rather displays a relationship between real in terest rates and investment. This leaves B as the only logical choice.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.