What Does a Higher Interest Rate Induce People to Do

question 56

Multiple Choice

What does a higher interest rate induce people to do?

• A) save more, so the supply of loanable funds slopes upward
• B) save less, so the supply of loanable funds slopes downward
• C) invest more, so the supply of loanable funds slopes upward
• D) invest less, so the supply of loanable funds slopes downward

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Definitions:

Fifth Amendment

A provision of the United States Constitution that grants individuals rights against self-incrimination, double jeopardy, and mandates due process of law.

Unreasonable Searches

Searches conducted by authorities without a valid warrant or without probable cause, in violation of the Fourth Amendment rights.

Misdemeanor

A criminal offense considered less severe than a felony, often punishable by fines or short term imprisonment.

RICO

RICO, the Racketeer Influenced and Corrupt Organizations Act, is a federal law aimed at combating organized crime by allowing prosecution and civil penalties for racketeering activity.