If the Interest Rate Increases, the

question 59

Multiple Choice

If the interest rate increases, the

• A)cost of saving will increase
• B)cost of borrowing will increase
• C)firm should decrease the amount of capital it owns by selling capital
• D)firm should acquire more capital
• E)supply of loanable funds will increase

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Definitions:

Communication Network

A system or structure that enables the exchange of information between individuals or entities using various channels and technologies.

Autonomic Nervous System

A part of the nervous system that unconsciously regulates bodily functions such as heart rate, digestion, and respiratory rate.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the organism's environment into internal electrical impulses.