If the Market Interest Rate Increases, Then

question 128

Multiple Choice

If the market interest rate increases, then

• A)the cost of borrowing increases and so saving falls
• B)the opportunity cost of consuming a good in the future increases and saving, therefore, increases
• C)the opportunity cost of consuming a good in the future increases and saving, therefore, falls
• D)the reward for saving diminishes and so present consumption increases
• E)the reward for saving increases and so saving increases

---

Definitions:

Post-Purchase Processes

The series of steps and activities that occur after a consumer has bought a product, including evaluation of satisfaction and potential for repeat purchase.

Consumption Awareness

Consciousness regarding the impact of one’s consumption habits on economic, environmental, and social aspects.

Differentiated Marketing

A marketing strategy in which a company targets several market segments with a unique product or service offering for each.

Product Specialization

A strategy where a business focuses on the production and development of a particular product or range of products, often to achieve higher levels of efficiency and expertise.