An Increase in the Interest Rate Will

question 107

Multiple Choice

An increase in the interest rate will

• A)have no effect on investment,since investment is autonomous
• B)increase investment,since it will be more profitable to hold stocks and bonds
• C)increase investment,since people will be less willing to hold money
• D)decrease investment only if firms have to borrow money to make investments
• E)decrease investment regardless of whether firms have to borrow money to make an investment

---

Definitions:

Foreign Born

Individuals who were born outside the country of their current residence.

Graduate Programs

Advanced academic degrees pursued after completing an undergraduate degree, such as master's and doctoral degrees.

Undergraduate Programs

Educational programs offered by colleges and universities that lead to a bachelor's degree or equivalent qualifications.

Military Sexual Trauma

Psychological trauma resulting from sexual harassment or assault experienced during military service.