An Increase in the Interest Rate Causes a Decrease in Investment

question 118

True/False

An increase in the interest rate causes a decrease in investment by shifting the loanable funds demand curve to the left.

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Definitions:

New England Colonists

Early European settlers of the northeastern region of the United States, known for their role in establishing some of the first English colonies.

Acadia

A historical region in North America, mainly encompassing parts of present-day provinces of Nova Scotia, New Brunswick, and Quebec, known for its early French colonial history.

Redemptioners

Immigrants, particularly in the 18th and 19th centuries, who signed contracts to work in America for a period in exchange for their passage being paid.

Cadwallader Colden

An 18th-century Scottish physician, scientist, and lieutenant governor of New York known for his work in botany and colonial administration.