If planned investment decreases as the interest rate increases, the size of the government spending multiplier will be

A) zero.
B) larger than the government spending multiplier that would result if planned investment were independent of the interest rate.
C) the same as the government spending multiplier that would result if planned, investment were independent of the interest rate.
D) smaller than the government spending multiplier that would result if planned investment were independent of the interest rate


Answer: D) smaller than the government spending multiplier that would result if planned investment were independent of the interest rate

Economics

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Economics