The investment demand curve indicates that there is a(n):
A)positive relationship between the real interest rates and the level of investment spending, all other things equal.
B)inverse relationship between the real interest rates and the level of investment spending, all other things equal.
C)direct relationship between the real interest rates and the level of investment spending, all other things equal.
D)inverse relationship between the determinants of investment and the level of investment spending, holding interest rates constant.

Question

Quizplus · Accepted Answer

The investment demand curve shows an inverse relationship between real interest rates and investment spending, meaning as interest rates decrease, investment spending tends to increase, and vice versa.

The Investment Demand Curve Indicates That There Is A(n)