A Rise in the Real Interest Rate ________ Consumption Expenditure

question 44

Multiple Choice

A rise in the real interest rate ________ consumption expenditure and ________.

• A) decreases; shifts the consumption function upward
• B) decreases; results in a movement downward along the consumption function
• C) increases; shifts the consumption function upward
• D) increases; shifts the consumption function downward
• E) decreases; shifts the consumption function downward

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Definitions:

Points

In mathematics, points represent precise locations in a given space, having no size, shape, or dimension, typically represented in coordinate systems.

Distance Formula

An equation used to determine the distance between two points in a coordinate plane, derived from the Pythagorean theorem.

Collinear

Refers to points lying on the same straight line.

Perimeter

The total distance around the edge of a two-dimensional shape.