Which of the Following Best Explains Why There Is a Positive

question 70

Multiple Choice

Which of the following best explains why there is a positive relationship between the interest rate and the supply of households' savings to the financial capital market?

• A)a decrease in the interest rate increases the opportunity cost of current spending,which leads to an increase in desired saving
• B)an increase in the interest rate increases the opportunity cost of current spending,which leads to a decrease in desired saving
• C)an increase in the interest rate increases the opportunity cost of current spending,which leads to an increase in desired saving
• D)an increase in the interest rate causes the investment demand curve to shift up
• E)an increase in the interest rate causes the savings demand curve to shift up

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Definitions:

Interaction

The process by which entities (individuals, groups, or elements) act upon and influence each other, typically studied within social, psychological, or biological contexts.

Consciousness Raising

Consciousness raising involves activities or discussions aimed at increasing awareness of personal issues or societal problems, often used within feminist and social justice movements.

Social Liberation

A process of gaining greater autonomy and rights in a social context, often associated with marginalized or oppressed groups seeking equality.

Therapeutic Process

The sequence of interventions, interactions, and stages that occur within a therapeutic relationship aimed at achieving the treatment goals set by the therapist and client.