Which of the Following Would Cause a Fall in the Market

question 97

Multiple Choice

Which of the following would cause a fall in the market interest rate?

• A)an increase in the risk cost of investment
• B)an increase in the inflation rate
• C)an increase in the marginal rate of return on investment
• D)a decrease in the marginal product of capital
• E)none of the above

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Definitions:

Marginal Utility

The boost in satisfaction from the consumption of an additional item of a good or service.

Total Utility

The overall satisfaction or pleasure a consumer derives from consuming a certain quantity of goods or services.

Marginal Utility

The extra fulfillment or advantage a person gains by consuming an additional unit of a product or service.