Increases in investment spending cause interest rates to increase. a. Ohouseholds will voluntarily decrease their consumption spending b. Ofirm will receive greater profits from households who are consuming goods C. Othe investment curve will shift leftward. d. Oa. households will demand more loanable funds. Ohouseholds will save a smaller fraction of their incomes e.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
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Increases in investment spending cause interest rates to increase. As a result,
a. Ohouseholds will voluntarily decrease their consumption spending
b. Ofirm will receive greater profits from households who are consuming goods
c. Othe investment curve will shift leftward
d. Oa. households will demand more loanable funds.
e. Ohouseholds will save a smaller fraction of their incomest
Transcribed Image Text:Increases in investment spending cause interest rates to increase. As a result, a. Ohouseholds will voluntarily decrease their consumption spending b. Ofirm will receive greater profits from households who are consuming goods c. Othe investment curve will shift leftward d. Oa. households will demand more loanable funds. e. Ohouseholds will save a smaller fraction of their incomest
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