Examlex

Solved

If the Investment Demand Curve Is Vertical,a Decrease in the Interest

question 161

Multiple Choice

If the investment demand curve is vertical,a decrease in the interest rate will __________ investment,and therefore aggregate demand will __________.


Definitions:

Closed Economy

An economic system that does not interact with other economies in terms of trade, investment, or capital flow.

Households

Economic units consisting of all individuals who occupy a home, which participate in economic decisions.

Loanable Funds

A term in economics referring to the market where savers supply funds for loans to borrowers, influenced by interest rates.

Induces

Induces means to lead or move someone to take action, often by persuasion or influence.

Related Questions