Other Things the Same, an Increase in the Interest Rate

question 60

Multiple Choice

Other things the same, an increase in the interest rate makes the quantity of loanable funds demanded

• A)rise, and investment spending rise.
• B)rise, and investment spending fall.
• C)fall, and investment spending rise.
• D)fall, and investment spending fall.

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Definitions:

Price

The sum of money anticipated, needed, or handed over in exchange for an item.

Market Demand Curve

A graphical representation that shows the quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, within a specific time period.

Price

The financial quantity seen as necessary, expected, or provided in return for something.