As the Interest Rate Decreases

question 142

Multiple Choice

As the interest rate decreases,

• A)the demand for investment curve shifts to the right
• B)the demand for investment curve shifts to the left
• C)there is a downward movement along the demand for investment curve
• D)there is an upward movement along the demand for investment curve
• E)GDP decreases

---

Definitions:

Straight-Line Method

The straight-line method is a depreciation technique that allocates an even amount of depreciation expense over the useful life of an asset.

Amortization of Bond Discount

The gradual reduction or write-off of the difference between the face value and the lower issuing price of a bond over its term, impacting the issuer's financial statements.

Interest Expense

The financial obligation incurred from borrowing money over a set time frame.

Straight-Line Amortization

Straight-line amortization is a method of gradually reducing the cost of an intangible asset over its useful life in equal annual amounts.