A lower equilibrium interest rate
A) increases saving, reduces total spending, and increases total output.
B) decreases saving, increases total spending, and decreases total output.
C) increases investment, increases total spending, and increases total output.
D) decreases investment, decreases total spending, and increases total output.
Correct Answer:
Verified
Q197: The core concept that is central to
Q198: Q199: As interest rates decrease, the Q200: "Present value" refers to the Q201: Which expression is used to calculate the Q203: Other things equal, interest rates are Q204: If the interest rate is 5 percent, Q205: Other things equal, an increase in the Q206: The pure rate of interest is approximated Q207: ![]()
A)cost of current
A)value today of
A)higher on![]()
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