The Following Questions Refer to the Graph Below

question 119

Multiple Choice

The Following Questions Refer to the graph below.
-An increase in U.S.investment in Nigeria will have which effect on r? It will

• A)Increase
• B)Decrease
• C)Remain the same
• D)Be pegged at r¹
• E)Not be able to be determined

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Definitions:

Interest Rate

It represents the cost of borrowing money or the reward for saving, crucial for personal finance and economic policy decisions.

Years

Units of time that represent a period approximately equal to 365 days, used to measure duration or age.

Economic Profits

The surplus remaining after subtracting both the explicit and implicit costs from total revenues.

Productive Land Resources

Refers to natural resources that can be used for production purposes, such as agriculture, mining, and forestry.