Which of the following statements is true regarding interest rates and quantity of investment demanded?
A) Higher rates of interest raise the opportunity cost of investment and therefore increase the quantity of investment demanded.
B) Higher rates of interest lower the opportunity cost of investment and therefore reduce the quantity of investment demanded.
C) Higher rates of interest raise the opportunity cost of investment and therefore reduce the quantity of investment demanded.
D) Higher rates of interest lower the opportunity cost of investment and therefore increase the quantity of investment demanded.
Correct Answer:
Verified
Q43: Use the following to answer questions .
Exhibit:
Q44: Use the following to answer questions .
Exhibit:
Q45: The purchase of a bond is
A) not
Q46: Which of the following is not a
Q47: An increase in the interest rate will
A)
Q49: A decrease in the level of economic
Q50: Higher interest rates
A) lower the opportunity cost
Q51: Use the following to answer questions .
Exhibit:
Q52: An increase in interest rate will cause
Q53: Use the following to answer questions .
Exhibit:
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