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When investment is negatively related to the rate of interest, equilibrium output in the goods market:

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Question:

When investment is negatively related to the rate of interest, equilibrium output in the goods market:

A.

Is unrelated to the rate of interest

B.

Is inversely related to the rate of interest

C.

Is positively related to the rate of interest

D.

Falls as the rate of interest decreases

Answer» b. Is inversely related to the rate of interest

Note: The above multiple-choice question is for all general and Competitive Exams in India.