Higher interest rates motivate:
A) firms to invest less in new factories and working capital.
B) firms to invest more in new factories and working capital.
C) individuals to spend more on consumption goods.
D) individuals to spend more on capital goods.
Correct Answer:
Verified
Q19: Consumption:
A) is a major component of aggregate
Q23: The wealth effect explains the:
A) negative relationship
Q24: When the price level increases people:
A) demand
Q25: An increase in the price level causes
Q28: Increases in the overall price level:
A) result
Q29: Higher interest rates make it:
A) more expensive
Q30: When the price level increases people:
A) feel
Q31: A rise in the overall price level
Q32: The wealth effect explains the:
A) downward-sloping aggregate
Q33: The relationship between government spending and the
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