If the Interest Rate Increases, the

question 59

Multiple Choice

If the interest rate increases, the

• A)cost of saving will increase
• B)cost of borrowing will increase
• C)firm should decrease the amount of capital it owns by selling capital
• D)firm should acquire more capital
• E)supply of loanable funds will increase

---

Definitions:

Feel-good, Do-good Phenomenon

A psychological concept suggesting that individuals who feel happy or content are more likely to perform acts of kindness or altruism.

Emotion-focused

A therapeutic approach designed to help individuals manage and cope with their emotional responses rather than trying to change the underlying situation.

Problem-focused

A coping strategy targeting the causes of stress in practical ways, aiming to reduce or eliminate the source of the problem.

Coping

The use of cognitive and behavioral strategies to manage stress and emotional distress.