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If the Bank of England raises the base interest rate, what is the most likely immediate effect on consumer spending?

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MCQ

Type

practice

Style

Topic

The economic climate on businesses

Exam-style question

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If the Bank of England raises the base interest rate, what is the most likely immediate effect on consumer spending?.

  1. A.Consumers will buy more credit cards.
  2. B.Consumers will increase borrowing for big purchases.
  3. C.Consumers will reduce borrowing and spend less.
  4. D.Consumers will invest more in stocks.

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