If the Interest Rate Increases, the

question 59

Multiple Choice

If the interest rate increases, the

• A)cost of saving will increase
• B)cost of borrowing will increase
• C)firm should decrease the amount of capital it owns by selling capital
• D)firm should acquire more capital
• E)supply of loanable funds will increase

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Definitions:

Negative Message

A communication that conveys bad news, rejection, or unfavorable information to the recipient.

Detail

An individual feature, fact, or item, especially one that is considered to be intricate or significant.

Positive Message

Communication that conveys good news or a favorable outcome, often intended to motivate or affirm.

Informative Message

A communication that provides data, facts, updates, or feedback without an explicit intention to persuade.