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Which one of the following best represents the effect of an increase in excess capital stock on hand on investment spending and the investment demand
Which one of the following best represents the effect of an increase in excess capital stock on hand on investment spending and the investment demand curve. Group of answer choices None of the responses are correct --> decrease r --> increase interest rate --> decrease in profitability of investment --> decrease I, and the investment demand curve shifts to the left --> Increase r --> decrease in interest rate --> Increase in profitability of investment --> increase I, and there is movement down the investment demand curve from A to B --> decrease r --> decrease the profitability of investment --> decrease I, and the investment demand curve shifts to the left --> increase r --> increase the profitability of investment --> increase I, and the investment demand curve shifts to the right
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