Which of the Following Is NOT an Outcome of Higher

question 30

Multiple Choice

Which of the following is NOT an outcome of higher interest rates?

• A) Fewer investment opportunities appear profitable to businesses.
• B) Households cannot afford to borrow as much toward a home purchase.
• C) Savers face higher buying costs in the loanable funds markets.
• D) It is more expensive for business firms to borrow money.

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Definitions:

Redeem Coupons

The process of exchanging a coupon for a discount, rebate, or any other promotional offer while purchasing a product or service.

Long-Run Price Discrimination

A pricing strategy where a firm charges different prices for the same product or service in different markets or to different groups of consumers, based on long-term market conditions.

Price Elasticities

Measures that indicate how much the quantity demanded or supplied of a good responds to changes in its price.

Original Buyers

Individuals or entities that are the first to purchase a particular product or asset from its initial point of sale.