When Interest Rates Go Up, It Is

question 38

Multiple Choice

When interest rates go up, it is:

• A)more expensive for businesses to borrow, so investment falls.
• B)more expensive for businesses to borrow, so investment increases.
• C)cheaper for businesses to borrow, so investment falls.
• D)cheaper for businesses to borrow, so investment increases.

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Definitions:

Long-Term Memories

Memories that can be stored for an extended period, from days to decades.

Hippocampus

A major component of the brains of humans and other vertebrates, playing critical roles in the consolidation of information from short-term memory to long-term memory and in spatial memory that enables navigation.

Procedural Memories

A type of long-term memory that involves how to perform different actions and skills essentially, how we remember to do things.

Long-Term Memories

A type of memory capable of storing large amounts of information for potentially unlimited durations, from days to decades.