When the interest rate is high, planned investment is ________ so output is ________.
A) high; high
B) high; low
C) low; high
D) low; low

Name: When the interest rate is high, planned investment is ________ so output is ________. A) high; high B) high; low C) low; high D) low; low
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Question

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When the interest rate is high, the cost of borrowing increases, leading to a decrease in planned investment. This decrease in investment reduces overall economic output, hence output is low.

When the Interest Rate Is High, Planned Investment Is ________