An increase in the interest rate will cause
A) planned investment spending to increase.
B) planned investment spending to decrease.
C) the investment function to shift out.
D) the investment function to shift in.
Correct Answer:
Verified
Q247: Autonomous consumption is the level of consumption
Q249: Q255: The investment function is represented by Q259: When graphing the consumption function, what purpose Q260: According to the Keynesian model, what are Q261: Which of the following will NOT lead Q262: In Keynesian analysis, if investment remains constant Q263: An increase in the interest rate results Q264: Which of the following would increase the Q266: Compared to consumption spending, investment historically has
A)an inverse
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