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

---

Definitions:

Child Development

The study of how children grow and change physically, emotionally, socially, and cognitively from birth through adolescence.

Distinctly Different

Clearly not the same; having unique or differing characteristics that set something apart from others.

Developmental Stage

Developmental stage refers to a distinct phase within the human lifespan where individuals exhibit typical patterns of behavior and abilities characteristic of a certain age range.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychosocial development of human beings.