As the interest rate rises, debt service:
A. does not change and neither does the debt.
B. decreases.
C. does not change, but debt increases.
D. increases.
Answer: D
You might also like to view...
A decrease in the price level will lead to
A) a decrease in the real interest rate and an increase in net exports. B) an increase in the real interest rate and an increase in net exports. C) a decrease in the real interest rate and a decrease in net exports. D) an increase in the real interest rate and a decrease in net exports.
An example of a public good that the government has made excludable is:
A. city buses. B. sewer systems. C. police protection. D. national defense.
According to the Reverend Thomas Malthus
A. population tends to grow until checked by a shortage of food. B. population tends to grow until checked by a shortage of oxygen. C. population tends to grow unless checked by religious or moral restraints. D. economics is a dismal science.
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in three years?
A. $115,000 B. $133,000 C. $120,000 D. $155,000