The planned investment function shows that
A) real gross investment falls as real NNP increases.
B) a negative relationship exists between the level of planned investment and the interest rate.
C) a positive relationship exists between planned consumption and planned investment.
D) at higher levels of planned saving, planned investment increases.

Question

Quizplus · Accepted Answer

According to the planned investment function, there is a negative relationship between the level of planned investment and the interest rate. The other statements are not supported by the planned investment function.

The Planned Investment Function Shows That