If Interest Rates Rise,this Will

question 39

Multiple Choice

If interest rates rise,this will

• A) lower the cost of buying new homes and fewer new homes will be purchased thereby reducing consumption expenditure.
• B) lower the cost of buying new homes and fewer new homes will be purchased thereby reducing investment expenditure.
• C) raise the cost of buying new homes, and fewer new homes will be purchased thereby reducing investment expenditure.
• D) raise the cost of buying new homes, and more new homes will be purchased thereby increasing investment expenditure.

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Definitions:

Modern State

An organized political entity with a defined territory, government, and the capability to enter into relations with other states.

Social Stratification

describes the hierarchical arrangement of individuals in society based on wealth, power, race, education, ethnicity, gender, and other factors.

Archaic

Pertaining to an earlier period of time, often used to describe ancient civilizations or outdated language.