A Higher Real Interest Rate ________ Saving and ________ Consumption

question 92

Multiple Choice

A higher real interest rate ________ saving and ________ consumption spending.

• A)increases; increases
• B)increases; decreases
• C)does not change; does not change
• D)decreases; increases

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Definitions:

Beginning Inventory

refers to the value of inventory on hand at the start of an accounting period.

Purchase Discounts

Reductions in price given by a supplier to a buyer for prompt payment of their invoice.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed; it is recorded as a liability on the balance sheet.

Liability Account

A liability account is a ledger account representing an entity's obligations or debts to other parties, which can include loans, accounts payable, and accruals.