According to the Interest-Rate Effect, Higher Prices

question 120

Multiple Choice

According to the interest-rate effect, higher prices

• A) increase the value of money holdings which reduces consumption and investment spending.
• B) decrease the value of money which decreases consumption and investment spending.
• C) lower the real quantity of money, which causes interest rates to rise and investment to fall.
• D) lead to higher interest rates which reduces investment spending.

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Definitions:

Tech World

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Platform Capitalism

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