If the Interest Rate Increases from 3 Percent to 4

question 106

Multiple Choice

If the interest rate increases from 3 percent to 4 percent, other things constant, individuals will want to

• A)save and borrow more
• B)save and borrow less
• C)save more and borrow less
• D)save less and borrow more
• E)borrow more but save the same amount

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Definitions:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and function best in relatively bright light.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and play a key role in night vision.

Specialized Cells

Cells that have developed unique structures and functions to perform specific tasks within an organism, such as nerve or muscle cells.

Nervous System

The complex network of nerves and cells that transmits messages between the brain and the rest of the body.