Higher Interest Rates

question 53

Multiple Choice

Higher interest rates

• A) reduce total planned real expenditures because they increase the cost of borrowing funds.
• B) reduce total planned real expenditures because they reduce the income of bankers and other creditors.
• C) increase total planned real expenditures because they increase the incomes of all people in the economy.
• D) increase total planned real expenditures because they lower the costs of building new plants and equipment.