A Sharp Increase in Interest Rates, for Example, Tends to Have

question 106

True/False

A sharp increase in interest rates, for example, tends to have more impact on providers of higher-priced goods (e.g., Porsches) than on providers of lower-priced goods (e.g., Chevrolet Cobalt), whose customer base is much more price-sensitive.

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Definitions:

Personal Responsibility

The principle of taking ownership for one's actions and their consequent effects on oneself and others.

Work Opportunity Act

Legislation aimed at increasing job opportunities for certain groups of people, including the long-term unemployed, veterans, and recipients of certain types of public assistance.

Poorest Fifth

The segment of a population that ranks at the bottom 20% in terms of income.

Richest Fifth

The segment of a population that represents the top 20% in terms of wealth or income distribution.