A Higher Real Interest Rate _________ Saving and __________ Consumption

question 66

Multiple Choice

A higher real interest rate _________ saving and __________ consumption spending.

• A) increases;increases
• B) increases;decreases
• C) does not change;does not change
• D) decreases;increases
• E) decreases;decreases

---

Definitions:

Upper Echelon Theory

A perspective in organizational sociology and management which suggests that an organization's outcomes are largely determined by the values, personalities, and experiences of its top executives.

Background Characteristics

Refers to the various personal, social, and cultural attributes an individual brings to an organizational context, such as education, experience, and demographics.

Norms of Behavior

Norms of behavior refer to the standard or expected ways of acting within a particular society, group, or culture.

Mature Group

A group that has developed advanced levels of cohesion, communication, and functionality, effectively managing tasks and interpersonal relationships.