Question

The MEI expresses a relationship between: consumption and investment, or interest rates and investment. Stuck between these two answers.

Answer 1

Intrest rates to investments : If the intrest rates are the case of borrowing any country the lower the intrest rates the cheaper the amount of intrest to be paid so the Investment will be more in those cases . If the intrest rates are higher than the investment decreases.

Consumption and Investment: If there is a high level of investment in an economy it is means it has a high income level which means due to high income in any economy than the consumption will be more. If the consumption is less that means that the income levl is low which means that economy is not in a good position thus the investment will be decreased.