On A Graph With​ “Interest Rates” On The​ Y-axis And​ “Investment” On The​ X-axis

On a graph with​ ”Interest rates” on the​ y-axis and​ ”Investment” on the​ x-axis what would an investment demand curve look​ like?
A.
It would be upward sloping.
B.
It would be a​ U-shaped curve.
C.
It would be a vertical line.
D.
It would be downward sloping.
Part 2
The investment demand curve has this slope because firms will only invest in more capital as long​ as:
A.
the rate of return is high.
B.
the rate of return on that investment is less than the interest rate on loans available with comparable risk.
C.
the interest rate is low.
D.
the rate of return on that investment exceeds the interest rate on loans available with comparable risk.

Expert Answer

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