Interest Rate Increases Have a _____ Impact on the Residential

question 40

Multiple Choice

Interest rate increases have a _____ impact on the residential home construction industry and a _____ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

• A) positive; neutral
• B) negative; neutral
• C) negative; positive
• D) positive; negative

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Definitions:

Liabilities

Financial obligations or debts a company owes to others, which must be settled in the future by transfer of assets, provision of services, or other forms of economic benefit.

Capital

Refers to financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their own growth.

Classification

The systematic arrangement of business transactions or accounts into categories for reporting and analysis purposes.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance based on accounting rules.