Question 1
If planned investment is perfectly responsive to changes in the interest rate, the planned investment schedule
◦ has a negative slope.
◦ is horizontal.
◦ is vertical.
◦ has a positive slope.
Question 2
Refer to the information provided in Figure 23.8 below to answer the question(s) that follow.
Refer to Figure 23.8. The amount of planned investment increases if the interest rate
◦ drops from 8% to 4%.
◦ rises from 4% to 8%.
◦ remains at 8%.
◦ remains at 4%.