Which of the Following Is Correct

question 23

Multiple Choice

Which of the following is correct?

• A)As disposable income increases, the real interest rate rises.
• B)As disposable income decreases, saving decreases.
• C)The higher a household's wealth the greater is its saving.
• D)Both B and C are correct.
• E)Both A and C are correct.

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Definitions:

Bond Redemption

The process of repaying the principal amount of a bond at or before its maturity date.

Carrying Amount

The value of an asset or liability according to a company's financial statements, minus any depreciation or amortization.

Face Value

The face or monetary value displayed on a financial document like a bond or stock certificate, indicating its official worth.

Premium

An amount paid in addition to the standard cost or value, often for insurance, bonds, or the higher quality of a product or service.