An Increase in the Real Interest Rate Will Decrease Consumption

question 10

True/False

An increase in the real interest rate will decrease consumption and investment.

---

Definitions:

Unconscious Mind

A part of the mind that houses desires, memories, and information that are not within a person's conscious awareness, greatly influencing feelings and behaviors.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, and genetics.

Id

In psychoanalytic theory, the part of the personality structure that contains a person's basic drives and instincts, operating on the pleasure principle.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.