Question

Which formula expresses the relationship between investment and the rate of interest?

विकल्प

• \[I=f(r)\]

• \[I_g=I_n+I_r\]

• \[PI=\frac{I}{Y}\]

• \[MPI=\frac{\Delta I}{\Delta Y}\]

Answer 1

The investment function is written as \[I=f(r)\]. It means that the level of investment depends on the rate of interest.