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:

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenue remains as profit after all expenses are deducted.

Book Value per Share

The equity available to shareholders divided by the number of outstanding shares.

Dividend Yield Ratio

A measure demonstrating the annual dividend payout of a company in relation to its stock price.

Price-earnings Ratio

A financial ratio that measures a company’s stock price in relation to its earnings per share, providing insight into the value the market places on the company's earnings.