Asked by Bryce Folsom on Jun 18, 2024
Verified
Planned investment expenditures will eventually decrease after:
A) the money supply decreases.
B) the demand for money decreases.
C) the interest rate falls.
D) the Fed buys government securities.
E) business managers become more optimistic about future market conditions for their products.
Planned Investment
Investments that businesses intend to make in the future, often based on projected economic conditions or expected returns.
Money Supply
The total amount of money available in an economy at a specific time, including physical currency and demand deposits.
- Gain insight into how interest rates affect investment choices.
Verified Answer
JN
Jalen Neely-BaldwinJun 24, 2024
Final Answer :
A
Explanation :
A decrease in the money supply typically leads to higher interest rates, which can discourage investment by making borrowing more expensive.
Learning Objectives
- Gain insight into how interest rates affect investment choices.