Which of the Following Is Likely to Cause a Decrease

question 59

Multiple Choice

Which of the following is likely to cause a decrease in the equilibrium U.S. interest rate, other things being equal?

• A)a decrease in savings by foreign savers
• B)an increase in inflation
• C)pessimistic economic projections that cause businesses to reduce expansion plans
• D)a decrease in savings by U.S. households

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Definitions:

Foreign Market

Markets outside of a company's home country where it conducts or seeks to conduct business.

Primary Value Chain

The sequence of activities an organization undertakes to develop, produce, and sell its products or services, generating value for customers.

Production Function

An economic model expressing the relationship between inputs (like labor, capital) used in production and the output of those production processes.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.