164k views
10 votes
The interest rate effect of a decrease in the aggregate price level will increase which of the following?

User Ptrkcon
by
7.9k points

1 Answer

11 votes

Answer:

Investment spending.

Step-by-step explanation:

Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.

In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.

Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.

The interest rate effect of a decrease in the aggregate price level will increase investment spending.

User Arman Ozak
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.