Suppose the real interest rate is 6%. Draw the investment schedule that shows the relationship between the level of real GDP and investment. Instructions: Use the tool provided "I" to plot only the endpoints such that the first point touches the vertical axis.

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02-03-2022
Social Studies

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Suppose the real interest rate is 6%. Draw the investment schedule that shows the relationship between the level of real GDP and investment. Instructions: Use the tool provided "I" to plot only the endpoints such that the first point touches the vertical axis.

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michell96 michell96 · Answer 1 · 2022-03-08T12:13:15+01:00

In general, an increase in the GDP would lead to an increase in the real interest rate and a higher value in investments, while a decrease in the GDP would cause the opposite effect.

What is the GDP?

The GDP or the Gross Domestic Product is a factor in the economy that measures the value of the products and services produced in a country.

How is the GDP related to investments and the real interest rate?

In general, the interest rate is higher if the GDP is higher, this is because an increase in the GDP causes an increase in the interest rate. Moreover, this increases investment because it is more likely to get more money if you invest.

Note: This question is incomplete because there is not enough information about the current GDP; due to this, I answered it based on general knowledge.

Learn more about GDP in: https://brainly.com/question/4131508