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Q: Is a reduction in interest rates likely to affect spending on pizza?
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Which is most likely to be affected by changes in the rate of interest?

investment spending


What is the most likely result of an increase in interest rates a. investment spending rises b. investment spending falls c. the economy speeds up d. unemployment falls?

b. investment spending falls


How does inflation affect interest rates?

if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.


What would most likely interest environmental scientists?

There are a number of things that would most likely interest an environmental scientist. This will be anything that has to do with the environment and the various things that affect it.A+ water pollutionwater pollution


What does a reduction potential chart show?

How likely chemical species are to gain electrons and therefore, be "reduced". Reduction potential is measured in volts(V) and the more positive the reduction potential value, the more likely it will be reduced.


How does bankruptcy affect rates on loans?

It may make it difficult to get low or reasonable interest rates and there will likely be added stipulations as to extra fees and penalties.


What can the federal government do to try to bring the economy out of recession?

the federal reserve would try to lower nominal interest rate (monetary policy), not part of govt. The federal govt. would stimulate spending, either by lowering taxes or pumping money into the economy and spending more.


How does 8 percent persent reduction in revenue affects the economy?

It depends how the percentage reduction is made and to whom! Generally a reduction in government revenue if reflected in spending is likely to have a depressive effect on the economy as the flow of money in the economy slows down. However, although its not necessarily a popular idea amongst conventional economists, libertarians and some austria-school economists would argue that a reduction in government revunue means a reduction in tax, and a reduction in tax means more corporate revenue, which would , they argue, be stimulatory itself. I'm not sure there is evidence for this however as it seems to contradict a number of observed phenomena, including the tendency for austerity measures to actually depress economic recovery.


What would most likely interest an environmental scientist?

There are a number of things that would most likely interest an environmental scientist. This will be anything that has to do with the environment and the various things that affect it.A+ water pollutionwater pollution


What is most likely to occur after the government increases taxes?

It reduces the money available for private sector spending.


When would the government most likely increase its spending?

When unemployment has increased


When would the government most likely decrease its spending?

. When unemployment has decreased