An Increase in the Market Interest Rate Will _____

Multiple Choice

An increase in the market interest rate will _____

A) increase investment for individual firms, so total investment in the economy increases.
B) increase investment for individual firms, so total investment in the economy decreases.
C) decrease investment for individual firms, so total investment in the economy increases.
D) decrease investment for individual firms, so total investment in the economy decreases.
E) not change investment for individual firms, so total investment in the economy is unchanged.