Which of the Following Is an Effect of an Increase

question 123

Multiple Choice

Which of the following is an effect of an increase in the interest rate?

• A) It induces firms to invest more.
• B) It induces households to increase consumption.
• C) It shifts money demand to the right.
• D) It leads to the appreciation of the exchange rate.

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Definitions:

Demand Characteristics

Subtle cues or signals in an experimental environment that influence participants' behaviors or responses.

Independent Variables

Factors or conditions that are manipulated or controlled by researchers to determine their effects on dependent variables.

Case History

A detailed account of a person's life and psychological problems, used for analysis or study.

Correlational Study

A research method that examines the relationship between two or more variables without manipulating them.