Which of the Following Would Cause an Increase in Interest

question 102

Multiple Choice

Which of the following would cause an increase in interest rates in credit markets?

• A) a decrease in business demand for credit
• B) an increase in the supply of consumer saving
• C) an increase in the supply of business saving
• D) an increase in consumer demand for credit

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Definitions:

Marginal Utility

This concept refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Utility Maximization

The process by which individuals or consumers adjust their consumption of goods and services to achieve the highest level of utility or satisfaction.

Marginal-Utility Schedules

Charts or tables that represent the additional satisfaction or utility a consumer gains from consuming an additional unit of a good or service.

Utility Maximization

A principle in economics that suggests individuals and firms seek to allocate their resources in a way that maximizes their satisfaction or utility.