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Which of the Following Facts About Investment Is Not True

Question 28

Multiple Choice

Which of the following facts about investment is not true?


A) Investment is the component of expenditure that is least sensitive to the real interest rate.
B) Investment represents the purchase of new equipment or a new factory by a business firm.
C) Investment generally decreases when the real interest rate increases.
D) All of the above represent true facts about investment.
E) None of the above represent true facts about investment.

Correct Answer:

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