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In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold and interest rates move in the ____ direction as the change in the price level, while investment and the quantity RGDP demanded move in the ____ direction as the change in the price level.
Present Value
The present value of a future amount of money or series of cash flows, considering a particular return rate.
Interest Rate
The percentage of the principal charged by a lender for the use of its money or the rate at which interest is paid by a borrower for the use of money.
Consumes
The action of using up a good or service, typically resulting in a decrease in available quantity.
Consumption
The use of goods and services by households. It is an important component of GDP and a direct indicator of consumer spending behavior.
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