An Increase in Real Interest Rates Will ________ Current Consumption

question 5

Multiple Choice

An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers.

• A) increase; decrease
• B) decrease; increase
• C) have an unclear effect on; decrease
• D) decrease; have an unclear effect on

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Definitions:

Cold Canvass Prospecting

The technique of approaching potential customers without prior contact or appointment; often used to generate new leads.

Prospect

A potential customer or client who has been identified as someone who might be interested in a company's product or service.

Competing Products

Products that are in direct competition with each other, usually within the same market category, offering similar features or benefits.