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How might consumption be affected by rising interest rates

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Reference no: EM13323831

Studies have shown a link between rising debt-to- GDP ratios and real interest rates. Investment is not the only category of spending that might be sensitive to interest rates.

a. How might consumption be affected by rising interest rates due to a government deficit? Will all types of consumption be affected equally?

b. Does the data presented suggest that rising interest rates are currently a significant concern in the United States?

Reference no: EM13323831

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