What Is the Most Harmful Consequence to GDP from Interest

question 45

Multiple Choice

What is the most harmful consequence to GDP from interest rate ceilings?

• A) Lenders cannot earn a normal market return.
• B) Investment falls, dragging down GDP and future growth.
• C) Consumption increases and savings get too high.
• D) Each of these answers is correct.

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Definitions:

Mean

The mean is the average of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Population Standard Error

An indicator of the variability or distribution of average values from a sample in relation to the overall population mean.

Confidence Interval

A range of values derived from sample statistics that likely covers the true population parameter with a specified probability.

Population Standard Deviation

A measure of the dispersion of a population's values from the mean, representing how spread out the population data are.