Refer to the information provided in Figure 23.8 below to answer the question(s) that follow. Figure 23.8
-Refer to Figure 23.8. The amount of planned investment increases 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 23.8 below to answer the question(s) that follow.  Figure 23.8
-Refer to Figure 23.8. The amount of planned investment increases 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, as the interest rate drops from 8% to 4%, the amount of planned investment increases, indicating an inverse relationship between interest rates and planned investment. Therefore, A is the correct choice. B, C, and D are incorrect as they do not reflect a change in interest rates that would result in an increase in planned investment.

Refer to the Information Provided in Figure 23