If Interest Rates Rise

question 163

Multiple Choice

If interest rates rise,

• A) foreign entities that are borrowers of funds will borrow less.
• B) governments that are savers of funds will save less.
• C) households that are savers of funds will save more.
• D) businesses that are savers of funds will borrow less.
• E) it will reduce consumption smoothing.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, based on limited evidence as a starting point for further investigation.

Neuron Theory

The principle that the nervous system is made up of discrete individual cells called neurons, which are the fundamental units of the brain and nervous system.

Axon Hillock

The conical structure at the junction between the axon and the neuron cell body where action potentials are generated.

Neural Bridge

A connection formed between different parts of the nervous system to facilitate communication or signal transmission.