If Interest Rates on Consumer Loans Rise,the

question 26

Multiple Choice

If interest rates on consumer loans rise,the

• A) consumption function will shift downward.
• B) saving function will shift downward.
• C) consumption and saving functions will not change, but the amounts consumed and saved will decline.
• D) marginal propensity to consume will rise.
• E) marginal propensity to save will rise.

---

Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Accounting Fraud

Intentional manipulation or falsification of financial records or transactions to deceive stakeholders, often resulting in financial gain for the perpetrator or the company.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

U.S. Department Of Defense

The federal department charged with coordinating and supervising all agencies and functions of the government relating directly to national security and the United States armed forces.