Which Statement Is an Example of an Economic Trend

question 56

Multiple Choice

Which statement is an example of an economic trend?

• A)The South African Reserve Bank announces that it will decrease the interest rate charged to banks.
• B)Government passes legislation that increases the tax rate on companies.
• C)A new computer chip is announced which will allow for miniaturisation of many electronic devices.
• D)The EU declares an increase in tariffs on all agricultural goods.

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Definitions:

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, charged by lenders to borrowers for the use of assets.

Stock Prices

Stock prices represent the current market value of a company's shares, reflecting investor perceptions of its future financial prospects.

Net Wealth

The total assets owned by individuals, businesses, or nations, minus any liabilities owed.

Consumption

The total amount of goods and services consumed by households and individuals in an economy.