In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases, Multiple Choice the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods. the real value of money decreases; in turn, interest rates increase, which decreases net exports.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Answerthe maximum price that a buyer is willing to pay for a good;

The answer is

It is !