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Table 14-1 -Refer to Table 14-1. If the Market Interest Rate Declines

Question 58

Multiple Choice

Table 14-1
Table 14-1    -Refer to Table 14-1. If the market interest rate declines from 15% to 13%, what happens to the quantity of investment demanded? A)  It decreases by $2,200 because investment is now less profitable. B)  It decreases by $1,000 because investment is now less profitable. C)  It increases by $200 because investment is now more profitable. D)  It increases by $2,200 because investment is now more profitable.
-Refer to Table 14-1. If the market interest rate declines from 15% to 13%, what happens to the quantity of investment demanded?


A) It decreases by $2,200 because investment is now less profitable.
B) It decreases by $1,000 because investment is now less profitable.
C) It increases by $200 because investment is now more profitable.
D) It increases by $2,200 because investment is now more profitable.

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