Low Interest Rates Result In

question 95

Multiple Choice

Low interest rates result in:

• A) facilitating a greater supply of money for borrowers.
• B) reducing the cost of financing the federal budget deficit.
• C) encouraging a higher savings rate.
• D) bringing more investment avenues.
• E) improving the standard of living.

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Definitions:

Rental Income

Income received from renting out a property, such as a house or an apartment.

AGI

Adjusted Gross Income (AGI) is a measure of income calculated from your gross income and used to determine how much of your income is taxable.

Depreciation

The accounting process of allocating the cost of a tangible or physical asset over its useful life, used to represent wear and tear or obsolescence.

Net Income

The amount of money remaining after all operating expenses, taxes, and deductions are taken out from total revenue.