A Higher Real Interest Rate Today Makes Current Consumption

question 17

Multiple Choice

A higher real interest rate today makes current consumption

• A)more expensive relative to future consumption because the return on savings is lowered.
• B)more expensive relative to future consumption because the return on savings is increased.
• C)less expensive relative to future consumption because the return on savings is increased.
• D)less expensive relative to future consumption because the return on savings is lowered.
• E)just as expensive as future consumption because the return on saving is uncertain.

---

Definitions:

Life-threatening Injury

A type of injury that poses an immediate risk to a person's life, requiring urgent medical attention to prevent death.

Brain Chemicals

Substances, including neurotransmitters and hormones, that are produced in the brain and affect mood, behavior, and cognitive functions.

Synaptic Gap

The tiny space between neurons where neurotransmitters are released to transmit neural signals from one neuron to another.

Intersection

The point at which two or more paths, ideas, or elements meet or cross.