Which of the Following Statements Is FALSE If You Increase

question 84

Multiple Choice

Which of the following statements is FALSE if you increase your monthly payment above the required loan payment?

• A)The extra portion of the payment goes to the principal.
• B)You can significantly decrease the number of payments needed to pay off the loan.
• C)The extra portion of the payment increases the principal.
• D)Besides lowering the principal,you can significantly reduce the number of payments needed to pay off the loan.

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Definitions:

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a specific price level.

Capital Market

The input/factor market in which households supply their savings, for interest or for claims to future profits, to firms that demand funds to buy capital goods.

Investment

New capital additions to a firm’s capital stock. Although capital is measured at a given point in time (a stock), investment is measured over a period of time (a flow). The flow of investment increases the capital stock.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at various prices.