The relationship between the growth rate of real gross domestic product (GDP)and the growth rate of real investment is
A) positive.
B) negative.
C) unpredictable.
D) nonexistent.
E) positive at low levels of real GDP and then negative at higher levels of GDP.

Question

Quizplus · Accepted Answer

The growth rate of real GDP and the growth rate of real investment have a positive relationship, meaning that as real GDP grows, so does real investment. This is because as the economy grows, businesses are more likely to invest in expansion and new projects.

The Relationship Between the Growth Rate of Real Gross Domestic