If Aggregate Investment in an Economy Falls,which of the Following

question 55

Multiple Choice

If aggregate investment in an economy falls,which of the following is likely to happen?

• A) Asset prices will rise.
• B) Labor demand will increase.
• C) The revenue of firms in the economy will fall.
• D) The number of mortgage defaults will fall.

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Definitions:

Loanable Funds

The funds accessible for lending within the financial market.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded equals the quantity of money supplied, stabilizing the economy.

Loanable Funds

Refers to all the money available for borrowing in a nation's economy, which comes from savings and is used for loans and investments.

Shifted

Shifted refers to the change in position, direction, or tendency of an object, market demand/supply curve, or another measurable factor.