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Question
Which formula expresses the relationship between investment and the rate of interest?
Options
\[I=f(r)\]
\[I_g=I_n+I_r\]
\[PI=\frac{I}{Y}\]
\[MPI=\frac{\Delta I}{\Delta Y}\]
MCQ
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Solution
The investment function is written as \[I=f(r)\]. It means that the level of investment depends on the rate of interest.
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