Which of the Following Are the Likely Consequences, in the Domestic

question 13

Multiple Choice

Which of the following are the likely consequences, in the domestic economy of a country, of an increase in interest rates? 1. A rise in demand for capital goods. 2. A fall in demand for consumer goods. 3. A fall in demand for housing. 4. A rise in the exchange rate.

• A) 2, 3 and 4
• B) 1, 3 and 4
• C) 1, 2 and 4
• D) 1, 2 and 3

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those involved.

Shipload

A measurement or quantity of cargo that is large enough to be carried by a ship.

Duress

Coercion or compulsion by threat or force, often affecting the validity of a contract.

Assignment

The transfer of rights, property, or responsibilities from one party to another.