If an Individual Is a Debtor, an Increase in the Interest

question 253

Multiple Choice

If an individual is a debtor, an increase in the interest rate

• A) increases current consumption.
• B) decreases current consumption.
• C) has no effect on current consumption.
• D) will either increase or decrease current consumption depending on the size of the income and substitution effects.

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Definitions:

Sensation Seeking

Refers to a personality trait that involves the search for experiences and feelings that are varied, novel, complex, and intense.

Police Officer

A law enforcement official responsible for maintaining public order, enforcing laws, and preventing, detecting, and investigating crimes.

Race-Car Driver

An individual who competes in the sport of racing automobiles on tracks or off-road courses.

Sensation Seeking

The trait of searching for experiences and feelings that are varied, complex, novel, and intense.