If the Market Interest Rate Increases, Then

question 128

Multiple Choice

If the market interest rate increases, then

• A)the cost of borrowing increases and so saving falls
• B)the opportunity cost of consuming a good in the future increases and saving, therefore, increases
• C)the opportunity cost of consuming a good in the future increases and saving, therefore, falls
• D)the reward for saving diminishes and so present consumption increases
• E)the reward for saving increases and so saving increases

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Definitions:

Union Security Clause

A provision in a labor contract that requires employees to join the union within a certain time frame as a condition of their employment.

Legalistic Nature

Refers to actions or processes that are heavily reliant on formal legal procedures and regulations.

Collective Bargaining Contracts

Legally binding agreements resulting from negotiations between employers and labor unions on terms of employment.

Collective Bargaining Agreement

A legally binding agreement resulting from negotiations between a labor union and an employer that dictates the terms of employment.