At Higher Rates of Interest

question 7

Multiple Choice

At higher rates of interest

• A) households save less and businesses invest more.
• B) households save less and businesses invest less.
• C) households save more and businesses invest less.
• D) households save more and businesses invest more.

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Definitions:

Marginal Cost

The expenditure required to produce an additional unit of a product.

Short-run Cost Function

An economic formula that describes how production costs change in the short term with varying levels of output, assuming some inputs are fixed.

Average Cost

The cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Ovens

Cookery appliances designed for baking, roasting, and heating food through the application of direct or indirect heat.