Which of the Following Factors Would Be Most Likely to Lead

question 17

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 Central Bank 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.

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Definitions:

Aryl Diisocyanate

Organic compounds containing two isocyanate groups (-N=C=O) attached to an aromatic ring, used in the production of polyurethanes.

Ethylene Glycol

A colorless, odorless, sweet-tasting organic compound used as antifreeze in cooling and heating systems.

Polyesters

A category of polymers that contain the ester functional group in their main chain, widely used in fibers and plastics.

Diester

A diester is an organic compound formed when two hydroxyl groups in an acid are replaced by ester groups.