Higher Interest Rates

question 112

Multiple Choice

Higher interest rates

• A)reduce the quantity of goods and services demanded because they increase the cost of borrowing money.
• B)reduce the quantity of goods and services demanded because they reduce the income of bankers and other creditors.
• C)increase the quantity of goods and services demanded because they increase the incomes of all people in the economy.
• D)increase the quantity of goods and services demanded because they lower the costs of building new plants and equipment.

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Definitions:

Hierarchical Management Scheme

A structured organizational form in which decision-making authority is defined by a top-down approach.

Functional Design

A design approach focused on creating products, systems, or processes that optimize their operation and use based on their intended functions.

Divisional Design

A type of organizational structure where operations are divided into semi-autonomous units or divisions based on product, service, or geographic location, each with its own management.

U-form Design

A type of organizational structure where activities are divided according to their functions, emphasizing departmental specialization and hierarchical communication.