Which of the Following Effects Provide Incentives for Consumers to Spend

question 124

Multiple Choice

Which of the following effects provide incentives for consumers to spend less when the price level rises?

• A)the wealth effect and the interest-rate effect
• B)the wealth effect but not the interest-rate effect
• C)the interest-rate effect but not the wealth effect
• D)neither the wealth-effect nor the interest rate effect

---

Definitions:

Big Data

A collection of data so large and complex that it is difficult to manage using traditional database management systems.

ROM

Read-Only Memory, a type of non-volatile storage that is used in computers and electronic devices to store firmware or application software in a way that is not easily or frequently altered.

Volatile

Refers to something that is highly unstable and can change rapidly, often used to describe financial markets or chemical substances.

Mainframes

High-performance computers used primarily by large organizations for critical applications, bulk data processing such as census, industry and consumer statistics, enterprise resource planning, and transaction processing.