O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2013 · Q241 Mark

What is the most likely result of an increase in interest rates?

Arise in investment

Brise in borrowing

Cfall in consumer spending

Dfall in productivity

✓ Correct answer

C: fall in consumer spending

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Topic: Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2013 Paper 1 Variant 1, question 24.

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