Which of the Following Would Be Most Likely to Lead

Multiple Choice

Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?

A) Households start saving a larger percentage of their income.
B) The economy moves from a boom to a recession.
C) The level of inflation begins to decline.
D) Corporations step up their expansion plans and thus increase their demand for capital.
E) The Federal Reserve uses monetary policy in an attempt to stimulate the economy.