Answer
Investment spending can increase even if interest rates rise if the prices of capital or business taxes decline, or if there is a positive technological change.
Work Step by Step
Textbook pages 557 - 558
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 27 - Basic Macroeconomic Relationships - Questions - Page 565: 7
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