An Increase in the Interest Rate Reduces the Quantity of Goods

question 26

Multiple Choice

An increase in the interest rate reduces the quantity of goods and services demanded. As a result:

• A) the demand for domestic goods increases.
• B) the demand for foreign goods declines.
• C) the demand for residential and business investment goods increases.
• D) the demand for residential and business investment goods declines.

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Definitions:

Financial Impact

The effects or consequences of a particular event or action on the financial health or status of an individual, organization, or economy.

Spreadsheet Program

A computer application used for organizing, analyzing, and storing data in tabular form.

Enterprise Resource Planning System

Integrated management of main business processes, often in real-time and mediated by software and technology.

Decision Support System

An informational application that supports complex decision making and problem solving by combining personal knowledge with relevant historical data and projections.