If Interest Rates Fall, the Opportunity Cost of Spending Money

question 110

Multiple Choice

If interest rates fall, the opportunity cost of spending money today rather than tomorrow

• A)rises.
• B)falls.
• C)rises only if the prices of goods today rise.
• D)falls only if the prices of goods today fall.

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Definitions:

Capital

Production inputs consisting of technology, tools, information, and physical facilities.

Human Resources

The department within an organization that manages all matters related to employees, including hiring, training, development, and compliance with labor laws.

Social Responsibility

The obligation of an entity, individual or corporate, to act for the benefit of society at large, balancing profit-making with activities that benefit the community.

Entrepreneurship

The activity of setting up a business, taking on financial risks in the hope of profit.