Which of the Following Statements Is True Regarding Interest Rates

question 43

Multiple Choice

Which of the following statements is true regarding interest rates and quantity of investment demanded?

• A) Higher rates of interest raise the opportunity cost of investment and therefore increase the quantity of investment demanded.
• B) Higher rates of interest lower the opportunity cost of investment and therefore reduce the quantity of investment demanded.
• C) Higher rates of interest raise the opportunity cost of investment and therefore reduce the quantity of investment demanded.
• D) Higher rates of interest lower the opportunity cost of investment and therefore increase the quantity of investment demanded.

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Definitions:

Adaptive Significance

Refers to the beneficial features of traits that have evolved through natural selection to solve specific problems in an organism's environment.

Constant Light (LL)

An environmental condition in which organisms are exposed to uninterrupted light, used in research to study circadian rhythms and biological clocks.

Circadian Rhythm

The built-in, roughly 24-hour cycle of physiological processes that organisms follow, including sleeping and feeding patterns, which responds to light and darkness in an organism's environment.

Cricket Calling

The production of sounds by male crickets, typically for attracting females and deterring other males, through the rubbing of their wings together.