A rise in interest rates will cause
A. Investment spending to remain constant.
B. A decline in investment spending.
C. A rise in investment spending.
D. Investment spending to be eliminated from the economy.
Answer: B
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What will be an ideal response?
All of the following are government capital except
A) roads. B) schools. C) Treasury securities. D) mass-transit systems.
National income accounting reveals that the value of total production in an economy
A) is always greater than the value of total income in the economy. B) is always less than the value of total income in the economy. C) is always equal to the value of total income in the economy. D) may be greater than, less than , or equal to the value of total income in the economy.
If you agree to a long-term loan at a specified nominal rate of interest and inflation turns out to be higher than was anticipated,
A) the nominal rate of interest falls. B) the nominal rate of interest rises. C) the real rate of interest falls. D) the real rate of interest rises.