Investment spending tends to vary _______ with real interest rates and _______ with business managers' confidence.
A) directly; inversely
B) directly; directly
C) inversely; inversely
D) inversely; directly

Question

Quizplus · Accepted Answer

Investment spending tends to decrease as real interest rates increase, showing an inverse relationship. Conversely, it tends to increase with higher business managers' confidence, indicating a direct relationship.

Investment Spending Tends to Vary _______ with Real Interest Rates