If Interest Rates Rise

question 163

Multiple Choice

If interest rates rise,

• A) foreign entities that are borrowers of funds will borrow less.
• B) governments that are savers of funds will save less.
• C) households that are savers of funds will save more.
• D) businesses that are savers of funds will borrow less.
• E) it will reduce consumption smoothing.

Understand cell referencing, including the difference between absolute and relative references.

Gain proficiency in the use of goal seeking and data analysis tools within Excel.

Grasp the significance of error messages and how Excel displays these for troubleshooting.

Familiarize with Excel's data formatting symbols and their applications.

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Definitions:

Aggregate Expenditure Line

A graphical representation of the total planned spending in an economy at various levels of national income.

Price Level

A measure that reflects the average prices of goods and services in an economy at a specific point in time.

Marginal Propensity

The tendency of an individual or household to spend an additional dollar of income on consuming goods and services.

Simple Spending Multiplier

The ratio of a change in output to a change in autonomous spending that caused it, illustrating the impact of fiscal policy on total economic output.