An Increase in Interest Rates

question 215

Multiple Choice

An increase in interest rates

• A)decreases investment spending on machinery, equipment and factories, but increases consumption spending on durable goods and net exports.
• B)decreases investment spending on machinery, equipment and factories, and consumption spending on durable goods, but increases net exports.
• C)decreases investment spending on machinery, equipment and factories, consumption spending on durable goods, and net exports.
• D)increases investment spending on machinery, equipment and factories, consumption spending on durable goods, and net exports.
• E)decreases investment spending on machinery, equipment and factories, but increase net exports and consumption spending.

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Definitions:

Oral Auction

A public sale where goods or property are sold to the highest bidder through spoken bids, typically led by an auctioneer.

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the price offered by the second-highest bidder.

Sealed Bid

A bidding process where all bids are kept confidential until a specified time, ensuring fair competition and preventing bid adjustments.

Standard Automobiles

Refers to mass-produced cars that meet basic safety and performance standards.