Which of the following statements are correct?
A. According to the accelerator model, investment demand is proportional to the change in GDP.
B. The real rate of interest is the nominal rate of interest plus the inflation rate.
C. The higher the real interest rate, the higher is the rental cost of capital.
D. Investment is a stock concept.
E. Residential investment is low when mortgage interest rates are high.
Choose the correct answer from the options given below:
1
B, C and D only
2
A, C and E only
3
A, B and E only
4
C, D and E only