Higher interest rates are likely to
A. decrease consumer spending and increase consumer saving.
B. increase consumer spending and decrease consumer saving.
C. decrease both consumer spending and consumer saving.
D. have no effect on consumer spending or saving.
Answer: A
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All of the following are elements in the structure of the Fed EXCEPT the
A) 12 Federal Reserve Banks. B) presidents of the 12 Federal Reserve Banks. C) Executive Council to the Governor. D) Board of Governors. E) Federal Open Market Committee.
Increases in the marginal product of labor result from
A) increasing the usage of all inputs. B) the division of labor and specialization. C) the use of new technology. D) hiring more efficient workers.
Which of the following equations represent Taylor Rule?
A) rFF = rFF* - a(p – p*) - b B) rFF = rFF* + a(p – p*) + b C) rFF = rFF* - a(p – p*) + b D) rFF = rFF* + a(p + p*) + b
______ creates inefficiency in a labor market by preventing firms from hiring employees whose marginal revenue product is above the market wage
a. Efficiency wage b. Labor union c. Labor shortage d. Discrimination