The Equilibrium Interest Rate

question 202

Multiple Choice

The equilibrium interest rate

• A)affects both the size of total output and its composition.
• B)falls when the demand for loanable funds increases.
• C)determines the composition of R&D spending but not its total amount.
• D)increases when the expected rate of return on R&D spending falls.

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Definitions:

Sales Promotion

Marketing activities that aim to increase sales in the short-term by offering incentives or discounts to consumers or resellers.

Cost Per Contact

A metric that measures the average expense incurred by a company to make a single contact with a potential or current customer, often used in marketing and advertising.

Personal Selling

A sales method involving direct interaction between salespeople and individual customers to persuade the customer to make a purchase.

Advertising

The act of promoting products, services, or brands through various media channels to inform, attract and engage potential customers.