What Happens to Saving When Interest Rates Rise

question 33

Multiple Choice

What happens to saving when interest rates rise?

• A) It increases
• B) It decreases
• C) It can increase or decrease
• D) It is impossible to tell

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Definitions:

Steel

A hard, strong alloy of iron with carbon and often other elements, used widely as a structural and fabricating material.

Dumping

The practice of selling a product in a foreign market at a price lower than the production cost or domestic market price, often to gain market share or dispose of surplus.

Heckscher-Ohlin Theorem

An economic theory stating that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.