Increases in the Rate of Interest

question 5

Multiple Choice

Increases in the rate of interest

• A) make it more profitable for firms to invest in new projects.
• B) raise the expected rates of return on existing projects.
• C) cause net investment to exceed gross investment.
• D) raise the equilibrium levels of GDP.
• E) tend to reduce the amount of investment.

---

Definitions:

Sociologists

Social scientists who study human societies, their interactions, and the processes that preserve and change them, focusing on structures, systems, and dynamics of social life.

Ethnic Groups

Groups of people who share common cultural attributes, ancestry, language, or religious practices that distinguish them from other groups.

Money-Making Machine

An entity or activity that consistently generates a considerable amount of profit with minimal effort over time.

Corporate City

A concept wherein a city is influenced or dominated by corporate interests, often leading to the prioritization of business and economic development over other civic considerations.