The Effect of an Increase in Current Consumption That Results

question 35

Multiple Choice

The effect of an increase in current consumption that results when a higher real interest rate makes a consumer richer is called

• A)the substitution effect of the real interest rate on saving.
• B)the income effect of the real interest rate on saving.
• C)the net effect of the real interest rate on saving.
• D)the substitution effect of the real interest rate on consumption.

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Definitions:

Executive Orders

Directives issued by the President of the United States that have the force of law, often used to manage the operations of the federal government.

Force of Law

The characteristic of laws, regulations, or legal decisions that makes them enforceable by the legal system, ensuring compliance through penalties for violation.

Executive Power

The authority given to the President and the executive branch of the government to enforce laws and administer the government.

Impeachment Process

A formal procedure to accuse and possibly remove a public official for misconduct.