Refer to the information provided in Table 8.6 below to answer the questions that follow.
Table 8.6
A Hypothetical Investment Schedule
-Refer to Table 8.6. If the interest rate dropped from 15% to 6%, planned investment would ________ by $________ billion.
A) increase; 90
B) increase; 270
C) decrease; 90
D) decrease; 270

Question

Refer to the information provided in Table 8.6 below to answer the questions that follow.
Table 8.6
A Hypothetical Investment Schedule 
-Refer to Table 8.6. If the interest rate dropped from 15% to 6%, planned investment would ________ by $________ billion.
A) increase; 90 
B) increase; 270 
C) decrease; 90 
D) decrease; 270

Quizplus · Accepted Answer

At a lower interest rate, businesses are more likely to invest because borrowing costs are lower, leading to an increase in planned investment. The specific amounts are not provided in the question, but typically, a decrease in interest rates leads to an increase in investment.

Refer to the Information Provided in Table 8