A Lower Real Interest Rate ________ Saving and ________ Consumption

question 24

Multiple Choice

A lower 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:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a given period.

Accounts Receivables

Outstanding payments owed by clients to a company for goods or services that have been delivered, but payment has not been received.

Commitment Fee

A charge levied by a lender on a borrower for an agreed loan commitment that has not yet been utilized.

Revolving Credit

A credit facility that allows a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.