An increase in interest rates is directly related to an increase in both discretionary income and the demand for discretionary goods.

Name: An increase in interest rates is directly related to an increase in both discretionary income and the demand for discretionary goods.
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An increase in interest rates actually reduces discretionary income, as it makes borrowing more expensive. As a result, the demand for discretionary goods tends to decrease.

An Increase in Interest Rates Is Directly Related to an Increase