What Happens to the Demand for Discretionary Goods When Interest

question 23

Multiple Choice

What happens to the demand for discretionary goods when interest rates rise?

• A)It rises.
• B)It stays the same.
• C)It declines.
• D)There is no way to tell.
• E)It first rises then declines.

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Definitions:

Fluoride

A mineral known for its role in preventing tooth decay, often added to dental care products and water supplies.

Iron

A mineral essential for the body, primarily involved in the creation of red blood cells and the transportation of oxygen in the blood.

Zinc

An essential mineral important for immune function, wound healing, DNA synthesis, and cell division.

Alfredo Sauce

A rich and creamy sauce made with butter, heavy cream, and Parmesan cheese, often served over pasta.