If Disposable Income Increases, People _______ Saving and the Real

question 88

Multiple Choice

If disposable income increases, people _______ saving and the real interest rate _______.

• A)decrease; rises
• B)decrease; falls
• C)increase; falls
• D)increase; rises
• E)increase; rises or falls depending on the shift of the demand curve for loanable funds

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Definitions:

Direct Labor Rate

The cost of labor per hour for workers directly involved in the manufacturing process.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping manage liquidity and ensuring availability of cash.

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business or individual, often recorded in the accounting records.

Finished Goods Inventory

The total value of all completed products that have not yet been sold by a company.