the investment function is represented as an inverse relationship between the value of planned real…

the investment function is represented as an inverse relationship between the value of planned real investment and\na. the rate of saving.\nb. consumption.\nc. real disposable income.\nd. the rate of interest.

the investment function is represented as an inverse relationship between the value of planned real investment and\na. the rate of saving.\nb. consumption.\nc. real disposable income.\nd. the rate of interest.

Answer

Brief Explanations:

In economic theory, the investment - interest rate relationship is inverse. As the rate of interest rises, the cost of borrowing for investment increases, reducing the level of planned real investment. Saving, consumption, and real disposable income do not have an inverse relationship with planned real investment in the way that the interest rate does.

Answer:

D. the rate of interest