Which of the Following Would You Expect to Increase the Equilibrium

question 96

Multiple Choice

Which of the following would you expect to increase the equilibrium interest rate?

• A)an increase in the percentage of income after net taxes that households save
• B)an increase in the budget deficit
• C)a decrease in the profitability of investment projects firms are considering
• D)the government begins running a budget surplus

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Definitions:

Scoria Cone

A small, steep-sided volcanic cone made of glassy lava fragments that have been ejected from a volcanic vent and solidified in the air.

Caldera

A sizable volcanic cavity, usually created by a significant eruption that causes the volcano's mouth to collapse.

Vesicular Basalt

A type of basalt that is porous due to gas bubbles (vesicles) trapped within the lava as it cools on the Earth's surface.

Volcanic Breccia

A type of rock consisting of angular fragments of volcanic material cemented together by finer-grained sediments or volcanic ash.