Which of the Following Best Explains Why Consumption Expenditures Are

question 53

Multiple Choice

Which of the following best explains why consumption expenditures are affected by real interest rates?

• A)Higher real interest rates make it more expensive to finance the purchase of a new home.
• B)When interest rates are high, banks stop lending to households.
• C)An increase in real interest rates encourages people to save a larger proportion of their income, which means there is less income for consumption.
• D)When real interest rates are low, it is more difficult for households to borrow money because the supply of savings is low.
• E)When real interest rates are high, it is more difficult for households to borrow money because the supply of savings is low.

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Definitions:

Supervising Nurse

A registered nurse who oversees the activities and duties of other nursing staff within a healthcare setting.

Mouth Care

The routine cleaning and maintenance of the mouth, teeth, gums, and tongue for health and hygiene.

Skin Moisturized

The condition of the skin being hydrated, often achieved through the application of lotions or creams that prevent dryness.

Hospice Care

Specialized care aimed at providing comfort and support to patients and their families during the final stages of a terminal illness.