Which of the Following Would Be Most Likely to Lead

question 26

Multiple Choice

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

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

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Definitions:

Gypsum

A common calcium sulfate mineral, generally formed by the evaporation of water.

Clay

A fine-grained natural soil material containing clay minerals, known for its plasticity when wet and used in ceramics.

Wallboard

A construction material made from gypsum and used in building for walls and ceilings, known for its fire resistance.

Gypsum

A soft sulfate mineral composed of calcium sulfate dihydrate, used in the construction industry and as a fertilizer.