A Higher Real Interest Rate Today Makes Current Consumption

question 17

Multiple Choice

A higher real interest rate today makes current consumption

• A)more expensive relative to future consumption because the return on savings is lowered.
• B)more expensive relative to future consumption because the return on savings is increased.
• C)less expensive relative to future consumption because the return on savings is increased.
• D)less expensive relative to future consumption because the return on savings is lowered.
• E)just as expensive as future consumption because the return on saving is uncertain.

---

Definitions:

Collections Reports

Detailed reports that track the status of payments due from customers, often highlighting overdue payments or accounts receivable.

Tracking

The act of monitoring the progress or movement of an item or entity, often through the use of technology or software.

Sales

The activity or business of selling products or services.

Income by Customer

A report or metric that breaks down the total income received by the business, attributing it to each individual customer.