Which of the Following Is an Effect of an Increase

question 123

Multiple Choice

Which of the following is an effect of an increase in the interest rate?

• A) It induces firms to invest more.
• B) It induces households to increase consumption.
• C) It shifts money demand to the right.
• D) It leads to the appreciation of the exchange rate.

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Definitions:

Radio Ads

Advertisements that are broadcast over the radio to reach a wide audience, often used for marketing products, services, or events.

Billboards

Large outdoor advertising structures typically found in high-traffic areas, used to display promotional messages or advertisements.

Television Ads

Paid commercials broadcast on television, used by businesses to promote products, services, or brand messages to a wide audience.

Right Type

Refers to accurately categorizing or identifying items, such as documents, tasks, or products, according to their specific characteristics or purposes.