Table 14-1 -Refer to Table 14-1. If the Market Interest Rate Falls

question 69

Multiple Choice

Table 14-1

-Refer to Table 14-1. If the market interest rate falls from 15% to 11%, what happens to the quantity of investment demanded?

• A) It decreases by $2,200 because investment is now less profitable.
• B) It decreases by $1,000 because investment is now less profitable.
• C) It increases by $200 because investment is now more profitable.
• D) It increases by $2,200 because investment is now more profitable.

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Definitions:

Mafic Minerals

Dark-colored minerals that are rich in magnesium and iron, commonly found in basalt and gabbro.

Igneous Rocks

Rocks formed from the cooling and solidification of molten magma or lava.

Volcanic Glass

A shiny and smooth rock formed when molten lava cools rapidly without crystallizing.

Cooling

The process of losing heat, leading to a decrease in temperature; can refer to geologic formations solidifying from molten states.