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Question
Which one of the following statements is true?
A) The investment function is positively sloped to reflect the fact that higher interest rates cause more people to invest their funds.
B) The investment function is positively sloped to reflect the fact that lower interest rates cause more firms to expand their operations.
C) Along a given investment function, higher interest rates result in more investment projects being undertaken.
D) Along a given investment function, higher interest rates result in fewer investment projects being undertaken.
Answer
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Related questions
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