Which of the following decreases in response to the interest-rate effect from an increase in the price level? a. both investment and consumption b. consumption but not investment c. investment but not consumption d. neither investment nor consumption
Which of the following decreases in response to the interest-rate effect from an increase in the price level? a. both investment and consumption b. consumption but not investment c. investment but not consumption d. neither investment nor consumption
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 4E
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Question
Which of the following decreases in response to the interest-rate effect from an increase in the price level?
a. |
both investment and consumption
|
|
b. |
consumption but not investment
|
|
c. |
investment but not consumption
|
|
d. |
neither investment nor consumption
|
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