Question

2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financi

must: A. increase the price level by 10 percent. B. result in a higher level of unemployment C. increase real GDP by 10 perce
14. Refer to the table above. A comparative advantage in the production of gold is held by: A. Zimbabwe. B. Botswana. C. neit
21. Considering only its direct effect on income, the effect of monetary policy is that: A. both expansionary and contraction
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Answer #1

As per HomeworkLib guidelines first question is answered

Kindly ask rest of the questions in a separate post

1.

Correct option: (D) more likely to save, that is purchase a financial asset

Reason: With higher interest rates, consumers would want to save more and earn higher interest income. In order to do this, they will purchase financial assets like government treasury bills, certificates etc. which give them interest.

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