Refer to the diagrams. Curve A
A) is an investment schedule, and curve B is a consumption of ﬁxed capital schedule.
B) is an investment demand curve, and curve B is an investment schedule.
C) and curve B are totally unrelated.
D) shifts to the left when curve B shifts upward.

Question

Refer to the diagrams. Curve A
A) is an investment schedule, and curve B is a consumption of ﬁxed capital schedule. 
B) is an investment demand curve, and curve B is an investment schedule. 
C) and curve B are totally unrelated. 
D) shifts to the left when curve B shifts upward.

Quizplus · Accepted Answer

Curve A shows the relationship between the interest rate and the level of investment demand, making it an investment demand curve. Curve B shows the relationship between the level of investment and the amount of consumption of fixed capital, making it an investment schedule. Therefore, choice B is the correct option.

Refer to the Diagrams. Curve a