If the Market Interest Rate Increases, Then

question 128

Multiple Choice

If the market interest rate increases, then

• A)the cost of borrowing increases and so saving falls
• B)the opportunity cost of consuming a good in the future increases and saving, therefore, increases
• C)the opportunity cost of consuming a good in the future increases and saving, therefore, falls
• D)the reward for saving diminishes and so present consumption increases
• E)the reward for saving increases and so saving increases

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Definitions:

Product

A good or service that is created, offered, and sold to customers.

Activity-Based Costing

A pricing strategy where the organization's activities are pinpointed, and the costs for these activities are distributed across all products and services based on their respective consumption levels.

Unit Product Cost

The sum of all expenses, such as materials, labor, and overhead, divided by the total units manufactured.

Product N0

The identification or reference number assigned to a specific product or item.