]If Consumers Become More Optimistic,which of the Following Is the Most

question 171

Multiple Choice

]If consumers become more optimistic,which of the following is the most likely in the short run?

• A) A decrease in output,a decrease in money demand,and a decrease in the interest rate.
• B) An increase in output,an increase in money demand,and an increase in the interest rate.
• C) An increase in output,an increase in money demand,and a decrease in the interest rate.
• D) A decrease in output,an increase in money demand,and a decrease in the interest rate.
• E) An increase in output,a decrease in money demand,and a decrease in the interest rate.

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Definitions:

Current Ratio

A financial ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment.

Invoice Date

The date on which an invoice is issued, marking the beginning of the period in which payment is expected according to the terms of sale.

Profit Margin Ratio

A financial metric used to assess a company’s profitability by comparing net income to revenue.