If the Interest Rate Falls,other Things Being Equal,investment Spending Will

question 32

Multiple Choice

If the interest rate falls,other things being equal,investment spending will

• A)fall.
• B)rise.
• C)either rise,fall,or remain unchanged.
• D)not be affected.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on by choosing one option over another.

Trade

The exchange of goods, services, or both between individuals, businesses, or countries.

Corn

A cereal plant that bears large grains, or kernels, set in rows on a cob; an important crop for food, animal feed, and biofuel.

Acquired Comparative Advantage

The ability gained through strategic development and investment in industries or areas where a country or firm did not previously have a natural comparative advantage.