Other things the same,when the price level falls,interest rates
A)rise,so firms increase investment.
B)rise,so firms decrease investment.
C)fall,so firms increase investment.
D)fall,so firms decrease investment.

Question

Quizplus · Accepted Answer

When the price level falls, interest rates tend to fall as well, which encourages firms to increase investment due to lower borrowing costs.

Other Things the Same,when the Price Level Falls,interest Rates