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:

Immigrants

People who have moved to a new country from their place of origin to live permanently in the new location.

Political Rhetoric

The art of persuasive speaking or writing used by politicians and political institutions to influence public opinion, justify policies, or articulate ideologies.

Intersectional Perspective

An analytical framework that recognizes and examines the overlap of various social identities and how these intersections contribute to unique experiences of oppression and privilege.

Structural Perspective

An analytical framework that sees structure (the arrangement of and relations between the parts or elements of something complex) as the main influence on human behavior and societal outcomes.