Which of the Following Would You Expect to Increase the Equilibrium

question 219

Multiple Choice

Which of the following would you expect to increase the equilibrium interest rate?

• A)an increase in the percentage of income after net taxes that households save
• B)an increase in the budget deficit
• C)a decrease in the profitability of investment projects firms are considering
• D)a change from an income tax to a consumption tax

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Definitions:

Zygomatic

Yoking or joining; bony arch created by the junction of the zygomatic and temporal bones.

Occipital Bone

A cranial bone located at the lower back part of the skull, important for head support and connected to the atlas of the spine.

Cranium

Skull; in a more limited sense, the braincase.

Palatine Bone

One of the pair of bones forming the back part of the hard palate and part of the floor of the nasal cavity.