Assume that consumption does not depend on the interest rate. In this case, when there is a technological advance that leads to an increase in investment demand:

Question

Answer

investment increases and the interest rate rises.

Answer

investment and the interest rate are both unchanged.

Answer

investment is unchanged and the interest rate rises.

Answer

investment increases and the interest rate falls.

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Assume that consumption does not depend on the interest rate. In this case, when...

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