The interest rate effect shows that if the price level increases

A) consumers and businesses will increase their spending to buy the same amount of goods as before to make up for the higher interest rates.
B) consumers and businesses will decrease their spending as the interest rate increases, thereby pushing up the cost of acquiring funds.
C) U.S. exports and imports will both decrease.
D) the real value of financial assets will increase.


B

Economics

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The marginal cost of a good or service

A) can be calculated from the marginal benefit of that good or service. B) decreases as more of the good or service is produced. C) can be derived from the production possibilities frontier. D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping. E) None of the above answers is correct.

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What role do firms play in output markets? What role do firms play in factor markets?

What will be an ideal response?

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The four firm concentration is a measure of

a. the percentage of total output of the four largest firms in an industry b. the total output of the fourth largest firm in an industry c. the percentage of total sales of the four largest firms in an industry d. the total output or sales of the four largest firms in an industry e. either a or c

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Cash held by a bank in its vault is a part of the bank's

A. net worth. B. money supply. C. liabilities. D. reserves.

Economics