Which of the Following Statements Is True

question 91

Multiple Choice

Which of the following statements is true?

• A) If the real interest rate increases, the opportunity cost of current consumption increases.
• B) If the nominal wage rate increases, the opportunity cost of current consumption decreases.
• C) If the real wage rate increases, the opportunity cost of current consumption decreases.
• D) If the unemployment rate increases, the opportunity cost of current consumption decreases.

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Definitions:

Debt to Assets Ratio

A financial ratio that indicates the percentage of a company's assets financed by debt.

Current Assets

Resources anticipated to be turned into cash, disposed of, or utilized within a year or during the operational cycle, whichever period extends further.

Total Liabilities

The combined amount of obligations a company owes to external parties, including loans, accounts payable, mortgages, deferred revenues, and accrued expenses.

Loss on Bond Redemption

The financial loss realized when a bond is redeemed before its maturity date for a price higher than its face value.