Which of the Following Statements Best Describes Interest Rates

question 47

Multiple Choice

Which of the following statements best describes interest rates?

• A)The cost of money to fund users is basically determined by the rate of return required by fund providers.
• B)If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.
• C)If companies have fewer good investment opportunities, interest rates are likely to increase.
• D)If expected inflation increases, interest rates are likely to decrease.