a. The major economic functions of the interest rate are multiple choice 1 to influence investment and domestic output and to provide market incentives for saving. to influence investment and domestic output and to allocate money capital to its most productive uses. to provide market incentives for saving and to allocate money capital to its most productive uses. to provide market incentives for saving and to encourage international capital flows. b. Many businesses finance their investment activities internally. Should internal financing affect the efficiency with which the interest rate performs its functions