planned real investment is determined by the\na. money supply.\nb. the marginal tax rate.\nc. rate of…

planned real investment is determined by the\na. money supply.\nb. the marginal tax rate.\nc. rate of interest.\nd. the marginal propensity to save.\nthe amount of planned real investment in the economy has relationship with the rate of interest.

planned real investment is determined by the\na. money supply.\nb. the marginal tax rate.\nc. rate of interest.\nd. the marginal propensity to save.\nthe amount of planned real investment in the economy has relationship with the rate of interest.

Answer

Brief Explanations:

In economic theory, planned real investment is mainly influenced by the rate of interest. When the interest rate is high, the cost of borrowing for investment is high, so investment is low. When the interest rate is low, the cost of borrowing is low, and investment is more attractive. Thus, there is an inverse relationship between planned real - investment and the rate of interest.

Answer:

First question: C. rate of interest Second question: an inverse