Higher Interest Rates Caused by an Increase in the Price

question 20

Multiple Choice

Higher interest rates caused by an increase in the price level creates:

• A) an indirect negative relationship between the price level and investment spending.
• B) an indirect positive relationship between the price level and investment spending.
• C) the incentive for firms to invest more in new factories.
• D) the incentive for individuals to spend more on consumption goods.

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Definitions:

Sociobiologist

A scientist who studies the biological aspects of social behavior, often focusing on the evolutionary basis for such behaviors.

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Sociobiologists

Scientists who study the biological basis of social behavior across species, including humans, often focusing on how behavior contributes to survival and reproduction.

Sexual Novelty

The introduction of new or varied sexual experiences, practices, or partners in one's sexual life.