Which of the Following Is an Effect of a Decrease

question 65

Multiple Choice

Which of the following is an effect of a decrease in the interest rate?

• A) it induces firms to invest less
• B) it induces households to increase consumption
• C) people put more money in their savings accounts
• D) it leads to the appreciation of the exchange rate

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Definitions:

Mental Rotation

The cognitive ability to rotate mental representations of two-dimensional and three-dimensional objects.

Analogical Processes

Refers to the cognitive ability to draw similarities and make comparisons between different situations, objects, or concepts based on shared attributes or relationships.

Mental Representations

Contents in the mind that stand for some object, event, or state of affairs.

Propositions

Statements or assertions that express judgments or opinions.