What Effect Do Higher Interest Rates Have on Consumer Spending

question 207

Short Answer

What effect do higher interest rates have on consumer spending?
Consumer spending increases as people try to quickly buy goods before rates go even higher
Consumer spending decreases immediately, but then rises sharply after consumers get used to the new higher interest rates
Consumer spending is not impacted by changes in interest rates
Consumer spending decreases
It is not possible to tell from the information given

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Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, emphasizing environmental, economic, and social sustainability.

Global Corporations

Large companies that operate and provide services or products in multiple countries around the world.

Geert Hofstede's Framework

A model that identifies and analyzes five dimensions of cultural differences across countries, which are power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term orientation.

Cultural Dimensions

Conceptual frameworks that describe the effects of a society's culture on the values of its members, and how these values relate to behavior.