According to the interest rate effect, as the price level rises,:
A. people feel poorer and buy less.
B. United States products become more expensive and foreigners buy less U.S. goods.
C. interest rates fall, and people buy less.
D. interest rates rise, and people buy less.
Answer: D
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What will be an ideal response?
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a. increased; also increased b. decreased; also decreased c. increased; decreased d. decreased; increased
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a. product market b. payments market c. goods market d. services market e. resource market
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