contestada

If interest rates increase, business investment expenditures are likely to ______ and consumer durable expenditures are likely to _________. Multiple Choice decrease; decrease decrease; increase increase; decrease increase; increase

Relax

Respuesta :

Answer:

increase

decrease

Explanation:

When interest rate increases, the interest income earned on investments increases. As a result, investment expenditures increases

According to economic theory, disposable income is either saved or spent. If saving increases, expenditure decreases