The demand curve for investment in the economy as a function of interest rates is:
A)vertical.
B)horizontal.
C)upward sloping.
D)downward sloping.
E)elliptical.

Question

Quizplus · Accepted Answer

The demand curve for investment is typically downward sloping because as interest rates decrease, the cost of borrowing funds for investment decreases, leading to an increase in the quantity of investment demanded.

The Demand Curve for Investment in the Economy as a Function