Which of the Following Factors Would Be Most Likely to Lead

question 30

Multiple Choice

Which of the following factors would be most likely to lead to an increase in interest rates in the economy?

• A) Households reduce their consumption and increase their savings.
• B) The Federal Reserve decides to try to stimulate the economy.
• C) There is a decrease in expected inflation.
• D) The economy falls into a recession.
• E) Most businesses decide to modernize and expand their manufacturing capacity,and to install new equipment to reduce labor costs.

---

Definitions:

High Power Distance

A term from cultural dimensions theory referring to the degree to which less powerful members of organizations within a country expect and accept that power is distributed unequally.

Uncertainty Avoidance

A cultural dimension that describes the extent to which societies are comfortable with ambiguity, uncertainty, and unstructured situations.

Collectivist Ideals

Principles that prioritize the needs and goals of the group over individual desires and achievements.

Intolerance

Lack of willingness or ability to tolerate the existence of opinions or behavior that one dislikes or disagrees with.