When the Real Interest Rate Falls

question 90

Multiple Choice

When the real interest rate falls,

• A)the investment share will not be affected.
• B)people will choose to consume more and investment will fall.
• C)businesses are likely to decrease their purchases of new equipment and production facilities.
• D)businesses are likely to increase their purchases of new equipment and production facilities.
• E)people will choose to consume less and investment will fall.

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Definitions:

Molecules

Collections of atoms linked in a way that forms the smallest essential part of a chemical compound capable of participating in a chemical reaction.

Carbon-Hydrogen Bond

A chemical bond between carbon and hydrogen atoms, foundational to organic molecules.

Ethane

A simple alkane with two carbon atoms, used as a precursor in the production of ethylene for plastics and other chemical products.

Nonpolar

Describes molecules that do not have a separation of electric charge, leading to a lack of electric poles and evenly distributed electrical charges.