Consider the AD/AS framework seen in lectures. Say that, given the recent data on jobs added to the economy, firms feel confident that the economy will improve, and as a result investment in the economy increases. Compared to the initial equilibrium, in the long run equilibrium Prices fall, the nominal interest rate rises. None of the other answers. Prices rise, the nominal interest rate falls. Prices and the nominal interest rate fall. Prices and the nominal interest rate rise.

Since in the short run, the effect of these investment is that price level increase and nominal interest fall due to increase in the money supply and there is a increase in the real output but when the economy self correct in long run, the price level will fall and nominal interest rate rises to its original equilibrium level.

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Parrain Parrain · Answer 2 · 2022-03-22T12:27:54+01:00

As a result of the investment in the country increasing, the result will be Prices fall, the nominal interest rate rises.

Why would this be the result?

As a result of there being more investment, there will be more production of goods and services. This increase in supply of goods will lead to a fall in price.

The increase in investment will also mean that more loans are being taken by people which will increase the interest rate because loans are being demanded more.

Find out more on increases in interest rate at https://brainly.com/question/26521559.