A Decrease in the Real Interest Rate Will

question 219

Multiple Choice

A decrease in the real interest rate will

• A)cause consumers to spend less and save more.
• B)most likely increase consumer purchases of durable goods.
• C)most likely increase the reward to savings.
• D)most likely increase the cost of borrowing.
• E)most likely transfer wealth from borrowers to lenders.

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Definitions:

California Dental Association

A nonprofit organization representing the dental profession in California, dedicated to advancing the profession through education, advocacy, and member services.

Clayton Act

A U.S. antitrust law enacted in 1914 to promote competition and prevent unfair business practices in the marketplace.

1914

Generally references the year notable for the start of World War I, but without additional context, it doesn't apply to a specific key-term related to law or policy.

Enacted

Made into law by official legislative action.