Which of the Following Raises the Interest Rate

question 182

Multiple Choice

Which of the following raises the interest rate?

• A)an increase in government expenditures and an increase in the money supply
• B)an increase in government expenditures and a decrease in the money supply
• C)a decrease in government expenditures and an increase in the money supply
• D)a decrease in government expenditures and a decrease in the money supply

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Definitions:

Market Economy

An economic system in which supply and demand from consumers drive the production of goods and services.

Trade-Offs

Refers to the concept of giving up one thing in return for gaining another, often used in decision making where resources are scarce.

Allocate Time

The process of deciding how to distribute one's available time across various tasks or activities.

Current Consumption

Current consumption refers to the total goods and services that are consumed by individuals or households in the present time period.