What Should Happen to the Equilibrium Interest Rate and the Corresponding

question 60

Multiple Choice

What should happen to the equilibrium interest rate and the corresponding rate of investment if the Fed decreases the discount rate?

• A)The equilibrium interest rate and the equilibrium rate of investment should both increase.
• B)The equilibrium interest rate should increase,and the equilibrium rate of investment should decrease.
• C)The equilibrium interest rate should decrease,and the equilibrium rate of investment should increase.
• D)The equilibrium interest rate and the equilibrium rate of investment should both decrease.

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Definitions:

Publication

The act of making content available to the public, typically through books, journals, or digital media.

Hypotheses

Tentative explanations or propositions made on the basis of limited evidence as starting points for further investigation.

Random Assignment

A method used in experiments where participants are assigned to experimental or control groups randomly, ensuring each participant has an equal chance of being in any group.

Research Methods

Systematic techniques used to collect, analyze, and interpret data in scientific inquiry.