Which of the Following Decreases in Response to the Interest-Rate

question 57

Multiple Choice

Which of the following decreases in response to the interest-rate effect from an increase in the price level?

• A)both investment and consumption
• B)consumption but not investment
• C)investment but not consumption
• D)neither investment nor consumption

---

Definitions:

Antidumping Actions

A class of protective tariffs imposed by a domestic government on foreign imports that are thought to be priced below fair market value.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries by making foreign products more expensive compared to local ones.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the value of an asset in the open market.

Bilateral Trade Agreements

A trade agreement between just two countries.