Multiple Choice
An increase in the interest rate will
A) have no effect on investment,since investment is autonomous
B) increase investment,since it will be more profitable to hold stocks and bonds
C) increase investment,since people will be less willing to hold money
D) decrease investment only if firms have to borrow money to make investments
E) decrease investment regardless of whether firms have to borrow money to make an investment
Correct Answer:
Verified
Correct Answer:
Verified
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