When we draw an investment demand curve we hold constant all of the following except:
A)the expected rate of return from the investment.
B)the interest rate.
C)business taxes.
D)the present stock of capital goods.

Question

Quizplus · Accepted Answer

The interest rate is the variable on the vertical axis of the investment demand curve, so it is not held constant when drawing the curve.

When We Draw an Investment Demand Curve We Hold Constant