Which of the Following Would Be Most Likely to Lead

question 30

Multiple Choice

Which of the following would be most likely to lead to a higher level of interest rates in the economy?

• A) Households start saving a larger percentage of their income.
• B) Corporations step up their expansion plans and thus increase their demand for capital.
• C) The level of inflation begins to decline.
• D) The economy moves from a boom to a recession.
• E) The Federal Reserve decides to try to stimulate the economy.

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Definitions:

Strikebreakers

Individuals who work or are employed in place of union workers who are on strike, thus undermining the strike action.

Lockout

A negotiating tactic in which a firm forbids its unionized workers to return to work until a new collective bargaining agreement is signed; a means of imposing costs (lost wages) on union workers.

Union Representatives

Individuals elected or appointed to represent the interests and concerns of members within a labor union.

Labor Dispute

A disagreement between employees and employers, often involving issues like wages, working conditions, and union representation.