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AP® Macroeconomics

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Moderate

Investment and Interest Rates

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All of the following statements are true of investments in capital stock EXCEPT

A

there is an inverse relationship between the interest rate and investment.

B

when interest rates increases, investment increases.

C

investment in capital stock can impact a nation's productivity.

D

increases and decreases in investment influence the unemployment rate.

E

changes in investment shift the aggregate demand curve.