An Interest Rate Increase to 4 Percent Will Cause You

question 13

Multiple Choice

An interest rate increase to 4 percent will cause you to

• A)save more of your income.
• B)save less of your income.
• C)be more time patient.
• D)be more time impatient.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Cost Principle

An accounting principle that requires assets, liabilities, equity, and expenses to be recorded at their original cost.

Market Value

The market's current rate for transactions involving the purchase or sale of an asset or service.

Appraisal

The process of professionally estimating the value of a property, often used for taxation or sale purposes.