When Government Saving Is Negative

question 53

Multiple Choice

When government saving is negative,

• A)the real interest rate rises.
• B)the real interest rate falls.
• C)investment increases.
• D)the real interest rate falls if crowding-out occurs.
• E)the supply of loanable funds increases.

---

Definitions:

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Finished Goods Inventory

The inventory of finished goods that are prepared for sale but remain unsold.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Manufacturing Overhead Costs

Indirect costs related to manufacturing that cannot be directly attributed to specific units produced, such as maintenance and utility expenses.