1.

If the real rate of interest increases, then

Group of answer choices

the investment demand schedule shifts to the right, indicating an increase in investment spending.

the economy moves up along the investment demand schedule and investment spending falls.

the investment demand schedule shifts to the left, indicating a decrease in investment spending.

the economy moves down along the investment demand schedule and investment spending increases

2.

If Joe's disposable income increases from $1,000 to $1,600 and his level of saving increases from $100 to $300, his marginal propensity to:

Group of answer choices

consume is 4/10.

consume is 1/3.

consume is 2/3.

consume is 4/5.