If the Interest Rate on Student Loans _______, Students Will

question 151

Multiple Choice

If the interest rate on student loans _______, students will ________.

• A) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
• B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
• C) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
• D) falls from 6 percent to 1 percent; not change their saving but will change their investment
• E) None of the above answers are correct.

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Definitions:

Foreign Policy Powers

The authority granted primarily to the executive branch of a government to guide international relations, negotiate treaties, and conduct diplomacy.

Nuclear Arms Race

The competition for supremacy in nuclear warfare between countries, notably between the United States and the Soviet Union during the Cold War, characterized by the rapid development and testing of nuclear weapons.

Soviet Union

A socialist state that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), comprising multiple subnational Soviet republics.

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among countries worldwide.