When the Real Interest Rate Rises, There Is

question 50

Multiple Choice

When the real interest rate rises, there is

• A) an upward movement along the consumption function.
• B) a downward movement along the consumption function.
• C) neither a shift of the consumption function nor a movement along the consumption function.
• D) an upward shift of the consumption function.
• E) a downward shift of the consumption function.

---

Definitions:

Wagner Act

Another name for the National Labor Relations Act of 1935, which established the legal right for workers to form unions and engage in collective bargaining in the United States.

Monopoly Power

The ability of a company or entity to control or dominate an industry or sector, making it the primary or sole provider, often leading to limited competition and higher prices for consumers.

Norris-LaGuardia Act

A 1932 U.S. federal law that restricts the power of federal courts to issue injunctions against nonviolent labor disputes and supports workers' rights to participate in unions and strikes.

Yellow Dog Contracts

Employment agreements where workers promise not to join a labor union during their tenure with the employer, historically deemed unenforceable in the U.S.