मराठी

How is the investment function \[I=f(r)\] represented when the rate of interest rises?

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प्रश्न

How is the investment function \[I=f(r)\] represented when the rate of interest rises?

पर्याय

  • Downward-sloping — higher interest means less investment

  • Net investment is zero

  • Horizontal straight line parallel to the X-axis

  • Upward-sloping line from left to right

MCQ
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उत्तर

The investment function is downward-sloping with respect to the rate of interest. Higher interest makes investment less attractive, so investment decreases.

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