If the Interest Rate Increases, Then

question 4

Multiple Choice

If the interest rate increases, then

• A)households will decrease their level of saving.
• B)the supply of loanable funds will fall because it now costs more to borrow funds and people who were supplying the funds will realize that fewer people will be willing to borrow their funds.
• C)households will consume less and save more.
• D)government will consume more because it now costs more to borrow funds to buy goods.
• E)a, b, and d

---

Definitions:

Social Loafing

The occurrence when people put in less effort towards attaining an objective while working in a team compared to working solo.

Meaningful Task

A task perceived as significant and valuable by an individual, often leading to increased motivation and engagement.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Identifiable Contributions

Specific inputs or efforts by individuals or groups that can be directly linked to a particular outcome or result.