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    Macroeconomics
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    Exam 3: Show Me the Money: the Law of Supply
  5. Question
    Lower Interest Rates Reduce the Cost of Borrowing to Buy
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Lower Interest Rates Reduce the Cost of Borrowing to Buy

Question 25

Question 25

True/False

Lower interest rates reduce the cost of borrowing to buy inputs. If no other factors change, smart businesses increase their supply of outputs when interest rates are low.

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