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.
