A Small Increase in the Real Interest Rate Will Most

question 61

Multiple Choice

A small increase in the real interest rate will most likely

• A)increase desired saving, but the effect will be relatively small.
• B)increase desired saving substantially.
• C)decrease desired saving substantially.
• D)decrease desired saving, but the effect will be relatively small.

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Definitions:

Dichotomized Construct

A concept or variable that is divided into two mutually exclusive categories or groups.

Genetically Determined

Refers to traits or characteristics that are specified by an individual's DNA.

Hierarchy Of Needs

A theory proposed by Abraham Maslow outlining a five-tier model of human needs, ranging from basic physiological needs to self-actualization.

Dichotomy Corollary

A principle suggesting that psychological phenomena are often best understood by exploring the dualities or dichotomies that exist within them.