Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8
-Refer to Figure 8.8. The amount of planned investment decreases if the interest rate
A) drops from 8% to 4%.
B) rises from 4% to 8%.
C) remains at 8%.
D) remains at 4%.

Question

Refer to the information provided in Figure 8.8 below to answer the questions that follow.  Figure 8.8
-Refer to Figure 8.8. The amount of planned investment decreases if the interest rate
A) drops from 8% to 4%. 
B) rises from 4% to 8%. 
C) remains at 8%. 
D) remains at 4%.

Quizplus · Accepted Answer

According to the graph, there is an inverse relationship between the amount of planned investment and the interest rate. As the interest rate rises from 4% to 8%, the amount of planned investment decreases. Therefore, the best choice is B.

Refer to the Information Provided in Figure 8