A Rise in the Interest Rate Will Generally Result in People

question 181

True/False

A rise in the interest rate will generally result in people consuming less when they are old if the substitution effect outweighs the income effect.

---

Definitions:

Affirmative Action

Policies or measures aimed at increasing the opportunities for minorities and disadvantaged groups in various areas such as employment and education.

Merit Pay

Pay increases awarded in proportion to performance contributions.

Equality Principle

The ethical or ideological principle that individuals should be treated equally, with the same rights, opportunities, and respect, regardless of their differences.

Equal Employment Opportunity

A policy that ensures all individuals have an equal chance for employment, regardless of race, color, religion, sex, age, disability, or national origin.