The negative relationship between the demand for investment goods and the real interest rate is determined by the fact that more investment reduces the future depreciation. more investment reduces the marginal product of future capital. more investment increases the total supply for current goods. more investment increases the total demand for current goods. None of the other answers is correct.

The negative relationship between the demand for investment goods and the real interest rate is determined by the fact that more investment reduces the future depreciation. more investment reduces the marginal product of future capital. more investment increases the total supply for current goods. more investment increases the total demand for current goods. None of the other answers is correct.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 19SQ

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