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The difference between the investment demand curve and the investment schedule i

ID: 1185369 • Letter: T

Question

The difference between the investment demand curve and the investment schedule is that the former shows: A) A direct relationship between investment and interest rate, while the latter shows no correlation between investment and income B) An inverse relationship between investment and interest rate, while the latter shows no correlation between investment and income C) A direct relationship between investment and income, while the latter shows no correlation between investment and interest rate D) An inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate D) Unplanned decrease in inventories and GDP will decrease

Explanation / Answer

D) An inverse relationship between investment and income, while the latter shows no correlation between investment and interest rate

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