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Consider the investment demand curve above. If the real interest rate falls from 8 to 3 percent then: Question 1 0 options: Only projects A

Consider the investment demand curve above. If the real interest rate falls from

8

3

percent then:

Question

10

options:

Only projects A and B will now be pursued by businesses.

Projects C and D will now be additionally pursued by businesses.

Only project C will now be additionally pursued by businesses.

Projects A and B will no longer be pursued by businesses but instead projects C and D will now be pursued.

None of the projects will now be pursued by businesses.

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