chap 10 - 1.

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1.   The investment demand curve portrays an inverse (negative) relationship between:    Student Response Value Correct Answer Feedback A. investment and real  GDP.      B. the real interest rate  and investment. 100%       C.  the nominal interest  rate and investment.      D.  the price level and  investment.      Score: 1/1    2.   An upward shift of the saving schedule suggests:    Score: 0/1    3.  
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Assume a machine which has a useful life of only one year costs $2,000. Assume, also, that net of such  operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is  expected to be $2,300. If the firm finds it can borrow funds at an interest rate of 10 percent the firm should:    Score: 1/1    4.         Which of the following would increase investment, while leaving an existing investment demand curve, say,  ID 2 in place?   
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chap 10 - 1.

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