If the interest rate increases, which of the following will occur? O A. The quantity of planned investment will nrease. *B. The quantity of planned investment will decrease. OC. The investment function will shift rightward. *D. The investment function will shift leftward. Suppose that higher taxes are placed on businesses. Using the line drawing tool, show the effect on the investment function. Properly label your new curve. Carefully folow the instructons above, and anly draw the required objects. Planned Real Investment per Year (5 trillions) Annual Rate of Interest (%)

If the interest rate increases, which of the following will occur? O A. The quantity of planned investment will nrease. B. The quantity of planned investment will decrease. OC. The investment function will shift rightward. D. The investment function will shift leftward. Suppose that higher taxes are placed on businesses. Using the line drawing tool, show the effect on the investment function. Properly label your new curve. Carefully folow the instructons above, and anly draw the required objects. Planned Real Investment per Year (5 trillions) Annual Rate of Interest (%)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the interest rate increases, which of the following will occur?
10-
O A. The quantity of planned investment will increase.
B. The quantity of planned investment will decrease.
O C. The investment function will shift rightward.
D. The investment function will shift leftward.
Suppose that higher taxes are placed on businesses.
Using the line drawing tool, show the effect on the investment function.
Properly label your new curve.
Carefully follow the instructions above, and only draw the required objects.
To
Planned Real Investment per Year (S trillions)
Annual Rate of Interest (%)

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