If the Interest Rate Decreases, Ceteris Paribus

question 17

Multiple Choice

If the interest rate decreases, ceteris paribus,

• A)the demand curve for money shifts to the right.
• B)the demand curve for money shifts to the left.
• C)there is a movement downward along the demand curve for money.
• D)there is a movement upward along the demand curve for money.

---

Definitions:

List Price

The manufacturer's suggested retail price (MSRP) of a product, before any discounts, coupons, or negotiations.

Peak Seasonal

Periods during which demand for certain goods or services increases significantly, often related to the time of year.

Cash Discount

A cash discount is a reduction in the invoice price offered by a seller to the buyer in return for early payment of their bill, as a way to encourage quicker payment.