Which of the Following Have a Positive Relationship with Household

question 86

Multiple Choice

Which of the following have a positive relationship with household saving?
I. the real interest rate
II. disposable income
III. expected future income

• A) I, II and III
• B) I and II
• C) II and III
• D) II only

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Definitions:

Times-Interest-Earned Ratio

This financial metric measures a company's ability to meet its debt obligations based on its current income, calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Net Increase

The difference between the current period's value and the previous period's value when the current period's value is greater than the previous one.

Decrease in Cash

A reduction in the amount of cash held by a company, often reflected in its cash flow statement.

P/E Ratio

A valuation metric for a stock, calculated as the current market price per share divided by its earnings per share.