The investment schedule shows the:
A) Inverse relationship between the expected rate of return and the quantity of investment demanded
B) Positive relationship between the expected rate of return and the quantity of investment demanded
C) Amounts business firms collectively intend to invest at each possible level of GDP
D) Rate of interest that business firms must pay when they make investments in capital goods

Question

Quizplus · Accepted Answer

The investment schedule shows the amounts business firms collectively intend to invest at each possible level of GDP. It demonstrates the positive relationship between the expected rate of return and the quantity of investment demanded. However, it does not provide information about the rate of interest that business firms must pay when they make investments in capital goods, nor does it show an inverse relationship between the expected rate of return and the quantity of investment demanded.

The Investment Schedule Shows The