What Does a Higher Interest Rate Induce People to Do

question 56

Multiple Choice

What does a higher interest rate induce people to do?

• A) save more, so the supply of loanable funds slopes upward
• B) save less, so the supply of loanable funds slopes downward
• C) invest more, so the supply of loanable funds slopes upward
• D) invest less, so the supply of loanable funds slopes downward

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Definitions:

Childhood

The period in a human's life from birth to puberty, characterized by growth, development, and learning.

Nonaddictive Drugs

Substances that do not cause dependency or addiction in users, allowing for their consumption without the risk of developing a physical or psychological dependency.

Addictive Drugs

Substances that lead to psychological or physical dependence due to their effects on the brain.

Withdrawal Symptoms

Symptoms, either physical or mental, that appear upon decreasing or ceasing the consumption of a substance on which the body relies.