Higher Interest Rates

Multiple Choice

Higher interest rates

A) reduce total planned real expenditures because they increase the cost of borrowing funds.
B) reduce total planned real expenditures because they reduce the income of bankers and other creditors.
C) increase total planned real expenditures because they increase the incomes of all people in the economy.
D) increase total planned real expenditures because they lower the costs of building new plants and equipment.