The Lower Interest Rates

question 121

Multiple Choice

The lower interest rates:

• A) stimulate investment and consumer durable demand and this increases aggregate
• Demand.
• B) discourage investment and consumer durable demand and this increases aggregate
• Demand.
• C) stimulate investment and consumer durable demand and this decreases aggregate
• Demand.
• D) discourage investment and consumer durable demand and this decreases aggregate
• Demand.

---

Definitions:

Rational Agents

Entities that make decisions by logically assessing options and outcomes to maximize their own benefit.

Positive Outcome

A result that is beneficial, favorable, or desirable in nature.

Universal Law

A principle or rule considered to be objectively valid, applicable to all members of a defined group or condition.

Trust

A firm belief in the reliability, integrity, or ability of someone or something, fundamental for building relationships and ensuring cooperative behavior.