If Real Interest Rates Decrease, We Generally Expect

question 104

Multiple Choice

If real interest rates decrease, we generally expect

• A)saving to increase.
• B)saving to decrease.
• C)consumption spending to decrease.
• D)no significant change in saving.

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Definitions:

Operating Cash Flow

Cash generated by a company’s core business operations.

Cash Flow

Cash Flow is the net amount of cash and cash-equivalents being transferred into and out of a business, affecting its liquidity.

Assets

Resources owned by a company, expected to deliver future economic benefits.

Capital Gains

Profit realized from the sale of assets like stocks, bonds, or real estate when the selling price exceeds the purchasing price.