Higher Short Term Interest Rates Can Be Used to Prevent

question 1

Multiple Choice

Higher short term interest rates can be used to prevent inflation because they

• A) discourage saving
• B) increase the debt-service expense for the government
• C) cause the country's currency to depreciate on the world market
• D) enhance consumer confidence
• E) discourage investment

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Definitions:

Sherman Act

A landmark federal statute in U.S. antitrust law prohibiting monopolistic practices and promoting competition.

Tying Agreements

Arrangements where the seller conditions the sale of one product on the purchase of another product.

Per Se Violations

Actions or practices that are considered automatically illegal under anti-trust laws, without needing to prove harm.

Tying Agreement

A contractual agreement requiring a buyer to purchase an unwanted product or service to obtain a desired one, often seen as anti-competitive.