At lower interest rates,the cost of investing _____ and the quantity of funds demanded for investment _____.
A) decreases;increases
B) increases;decreases
C) increases;increases
D) decreases;decreases

Question

Quizplus · Accepted Answer

Lower interest rates reduce the cost of borrowing for investment, leading to an increase in the quantity of funds demanded for investment. Therefore, the cost of investing decreases, and the quantity of funds demanded for investment increases.

At Lower Interest Rates,the Cost of Investing _____ and the Quantity