If the interest rate on student loans ________, students will ________
A) falls from 6 percent to 1 percent; not change their saving but will change their investment
B) rises from 6 percent to 12 percent; increase their consumption before it becomes too expensive
C) rises from 6 percent to 12 percent; increase their saving in order to pay back the loan sooner
D) falls from 6 percent to 1 percent; increase their saving in order to pay back the loan sooner
E) None of the above answers is correct.
C
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Following the imposition of the Smoot-Hawley tariff
A) international trade continued to expand. B) more than 40 countries imposed higher tariffs of their own. C) employment in the United States expanded rapidly. D) Two of the above.
The average propensity to save (APS) is the proportion of disposable income that is saved
a. True b. False Indicate whether the statement is true or false