Increases in Investment Spending Cause Interest Rates to Increase

question 53

Multiple Choice

Increases in investment spending cause interest rates to increase.As a result,

• A) households will demand more loanable funds
• B) households will save a smaller fraction of their incomes
• C) households will voluntarily decrease their consumption spending
• D) the investment curve will shift leftward
• E) firm will receive greater profits from households who are consuming goods

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Definitions:

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A hormone and neurotransmitter often associated with social bonding, childbirth, and breastfeeding.