The Consumption Share Is Negatively Related to the Real Interest

question 6

Multiple Choice

The consumption share is negatively related to the real interest rate because a higher interest rate today

• A)makes current consumption more expensive relative to future consumption.
• B)lowers the price of current consumption relative to the future.
• C)makes future consumption more expensive relative to current consumption.
• D)reduces current savings.
• E)increases the government share.

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Definitions:

Semimembranosus

A large muscle in the back of the thigh that is part of the hamstrings group and helps in thigh extension and knee flexion.

Extensor Digitorum Longus

A muscle in the lower leg that helps to extend the toes and dorsiflex the foot, aiding in walking and running.

Fibularis Tertius

A small muscle in the lower leg that helps with foot eversion and extension of the toes.

Gastrocnemius

A major calf muscle that is involved in walking, running, and jumping, aiding in the bending of the knee and the plantar flexion of the foot.