Changes in the Equilibrium Interest Rate Will

question 167

Multiple Choice

Changes in the equilibrium interest rate will

• A) affect both the size of the domestic output and the allocation of capital goods among industries.
• B) affect the size of the domestic output but not the allocation of capital goods among industries.
• C) affect the allocation of capital goods among industries but not the size of the domestic output.
• D) have no perceptible effect on either the size of the domestic output or the allocation of capital goods among industries.

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