If the Interest Rate Increased,which of the Following Would Occur

question 18

Multiple Choice

If the interest rate increased,which of the following would occur?

• A) Nothing would occur.
• B) The consumption-income line would shift downward.
• C) The consumption-income line would shifts upward.
• D) There would be an rightward movement along the consumption-income line.
• E) There would be a leftward movement along the consumption-income line.

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Definitions:

Commercial Explosive

Materials or chemicals used in the construction and mining industries, among others, to demolish or move materials through controlled explosions.

Dynamite

An explosive made of nitroglycerin, sorbents (like silica), and stabilizers, invented by Alfred Nobel and used in mining and construction.

Nonvolatile Solute

A solute that does not easily vaporize into gas under existing conditions, typically leading to an increase in the boiling point of the solvent when dissolved.

Solvent

A substance, usually a liquid, capable of dissolving other substances (solutes) to form a solution.