How Does an Increase in the Interest Rate Affect the Demand

question 126

Multiple Choice

How does an increase in the interest rate affect the demand for goods and services?

• A) It increases the cost of borrowing and people consume more.
• B) It decreases the cost of borrowing and people consume more.
• C) It increases the cost of borrowing and people consume less.
• D) It decreases the cost of borrowing and people consume less.

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Definitions:

Multichannel Marketing

A strategy that involves interacting with customers through multiple direct and indirect communication channels, maximizing reach and engagement.

Dual Distribution

A distribution strategy where a producer uses two or more different types of channels to reach its customers.

Hassle-free Eating

An eating experience that is convenient and requires minimal effort in preparation, making it appealing for busy or convenience-oriented consumers.