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what happens to consumer and business spending when the interest rates go up?

Aboth types of spending increase
Bboth types of spending decrease
Cconsumer spending increase and business spending decreases
Dbusiness spending increases and consumer spending decreases

which of the following was a lasting effect of the OPEC embargo in the 1970s on the U.S. economy?

Ahigher gasoline prices
Blower interest rates
Creduced use of petroleum
Dreduced taxes

Verified Answer :

CharlieStryker

#1) What happens to consumer and business spending when the interest rates go up?

Answer: Out of all the options that are presented the one that best describes what happens to consumer and business spending when interest rates go up is answer choice B) Both types of spending decrease.

#2) Which of the following was a lasting effect of the OPEC embargo in the 1970's on the U.S. economy?

Answer: Out of all the options the one that represents a lasting effect of the OPEC embargo in the 1970’s on the U.S. economy is A) Higher gasoline prices. During this time there was stagflation and inflation. Also the creation of more fuel efficient cars.

I hope it helps, Regards.

jumbledeyes

Answer 1.

B. Both types of spending decrease.

Explanation:

Interest rates is the cost that comes from borrowing money from the bank. When interest rates goes up consumers decrease their spendings because it is more expensive to borrow money from the bank and they don't have as much disposable income as when interest rates are low, the same happens to business spending, when consumers cut back on their spending they don't consume as much product and services which means it is a bad time for businesses to spend money.

Answer 2.

C. Reduced use of petroleum.

Explanation:

The Organization of the Petroleum Exporting Countries (OPEC) embargo was a decision to stop exporting oil to the United States, this decision was made after the United States supported Israel after an attack by Egypt and Syria in the Yom Kippur War and because of the devaluation of the dollar after President Nixon took off the United States of the gold standard. Since oil prices remained remarkably high, the use of petroleum was reduced and the use of new sources of energy began to rise.

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