An Increase in the Interest Rate,other Things Equal,would

question 147

Multiple Choice

An increase in the interest rate,other things equal,would

• A)have no effect on investment
• B)increase the amount invested since the rate of return would be lower
• C)increase the amount invested because income would rise
• D)reduce the amount invested because the opportunity costs of investing would be higher
• E)increase the amount invested because the rate of return would be higher

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Definitions:

Cognitive Factors

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Precontemplation Stage

The stage in the Transtheoretical Model of Change where the individual is not yet considering change or is unaware of the need to change.

Chain Smoker

An individual who smokes cigarettes successively, frequently lighting the next cigarette with the previous one.

Action Stage

A phase in the Transtheoretical Model of behavior change where individuals apply specific strategies to engage in new behaviors.