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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Definitions:

Racial Disparity

Significant differences and inequalities that exist among racial or ethnic groups in various aspects of life such as health, wealth, and education.

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The acquisition of the territory of Louisiana by the United States from France in 1803, significantly expanding the size of the nation.

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The second-longest river in North America, flowing approximately 2,340 miles from its source in Minnesota to the Gulf of Mexico.

Louisiana Purchase

The Louisiana Purchase was a significant land acquisition by the United States from France in 1803, doubling the size of the nation and opening up the continent for westward expansion.