Which of the Following Would You Expect to Increase the Equilibrium

question 71

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)a change from an income tax to a consumption tax
• E)an increase in household savings

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Definitions:

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating and regulating voluntary muscle movements, balance, and posture.

Coordination

The organization of different elements or activities to enable them to work together effectively.

Short-Term Memory

A cognitive system with a limited capacity that is capable of temporarily holding information available for processing.

Reticular Formation

A network of nerves in the brainstem involved in regulating wakefulness and sleep-wake transitions.