________ Increases Households' Saving

question 102

Multiple Choice

________ increases households' saving.

• A)A decrease in the real interest rate
• B)A tax cut that increases disposable income
• C)Higher expected future income
• D)An increase in wealth
• E)An increase in default risk

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Definitions:

Notes Payable

Written promissory notes in which a borrower agrees to pay back the lender at a later date, often with interest.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividends

Earnings distributed to a company's shareholders, commonly as a profit disbursement.

Fees Earned

Income received for services provided, often used in professional and consulting business models.