Other Things the Same,an Increase in the Interest Rate Makes

question 10

Multiple Choice

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

• 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 amount of money expected, required, or given in exchange for something else.

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Long-Run Cost Diagram

A graphical representation that shows how the costs incurred by a firm change over time with varying levels of output when all inputs are variable.

Average Cost

The expense per unit, resulting from dividing the aggregate cost of production by the total units produced.