Which of the Following Is an Implication of Low Interest

question 52

Multiple Choice

Which of the following is an implication of low interest rates?

• A) Cost of capital for firms will be high.
• B) Firms will invest less in future growth.
• C) Economic growth rate will fall.
• D) Consumer demand will increase.

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Definitions:

Prepaid Subscriptions

Payments made in advance for subscription-based services, recognized as an asset until the service period has been fulfilled.

Calendar-Year

A one-year period that begins on January 1 and ends on December 31, used as the financial year by many countries and organizations.

Adjustment

A modification made to accounts or financial statements to correct them or to reflect changes in economic circumstances.

Unearned Subscription Revenue

Revenue received in advance for services or goods to be provided in the future, recognized as a liability until delivered.