Which of the Following Is Not True of Low Interest

question 159

Multiple Choice

Which of the following is not true of low interest rates?

• A)It encourages investors to search out investments like high-dividend stocks.
• B)It encourages the substitution of debt for equity.
• C)Low interest rates have increased the supply of credit.
• D)Low rates penalize savers.
• E)Low rates may discourage paying down the national debt.

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Definitions:

State Societies

Complex societies that have a structured system of government, often characterized by a central authority and social stratification.

Ancient

Pertaining to a period of history that is very old or from the distant past, typically before the fall of the Western Roman Empire in AD 476.

Modern State

An organized political entity with a defined territory, government, and the capability to enter into relations with other states.

Social Stratification

describes the hierarchical arrangement of individuals in society based on wealth, power, race, education, ethnicity, gender, and other factors.