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Which of the statements best describes interest rates

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Problem 1: Which of the following statements best describes interest rates?

a. If expected inflation increases, interest rates are likely to decrease.

b. The cost of money to fund users is basically determined by the rate of return required by fund providers.

c. If companies have fewer good investment opportunities, interest rates are likely to increase.

d. If individuals in general increase the percentage of their income that they save, interest rates are likely to increase.

Reference no: EM132687645

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