An Increase in the Real Interest Rate Will

question 191

Multiple Choice

An increase in the real interest rate will

• A)cause consumers to spend more and save less.
• B)most likely lower consumers' purchases of durable goods.
• C)most likely lower the reward to savings.
• D)most likely lower the cost of borrowing.

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Definitions:

Host-Country Nationals

Individuals who are citizens of the country in which a foreign subsidiary is located and are employed by the subsidiary.

Transnational Strategy

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