Which of the Following Have a Positive Relationship with Household

question 2

Multiple Choice

Which of the following have a positive relationship with household saving?
I. the real interest rate
II. disposable income
III. expected future income

• A) I and II
• B) II only
• C) II and III
• D) I, II and III

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Definitions:

Available-for-sale Securities

Financial assets intended to be sold off before they mature or in response to changes in market conditions, not classified as held-to-maturity or trading securities.

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote at shareholder meetings and receive dividends.

Dividends

Disbursements from a company to its owners, typically representing a share of the earnings.