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Unformatted text preview: es rise; quantity of investment falls. B. interest rates rise; quantity of investment rises. C. interest rates fall; quantity of investment falls. D. interest rates fall; quantity of investment rises. E. no significant change occurs. 3. When investment falls, what happens to the level of capital in the economy and future output (GDP)? A. capital and future GDP rise. B. capital and future GDP fall. C. capital rises; GDP falls. D. capital falls; GDP rises....
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This note was uploaded on 05/18/2012 for the course ECON 202 taught by Professor Leecoppock during the Spring '12 term at UVA Wise.
- Spring '12