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

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Definitions:

Policy Capturing Method

A research technique used to determine the attributes most influential in decision making by analyzing responses to a set of hypothetical scenarios.

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization to establish fair compensation.

Job Descriptions

Documents that outline the responsibilities, duties, qualifications, and requirements of a specific role within an organization.

Ontario Pay Equity Act

Legislation in Ontario, Canada, aimed at eliminating gender wage gaps by ensuring that female-dominated job classes are paid at least equally to male-dominated classes performing work of equal value.