Which Statement Is True

question 56

Multiple Choice

Which statement is true?

• A)Rent, but not the interest rate is determined by supply and demand.
• B)The interest rate, but not rent, is determined by supply and demand.
• C)Both rent and the interest rate are determined by supply and demand.
• D)Neither rent nor the interest rate is determined by supply and demand.

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Definitions:

Fixed Expenses

Costs that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and insurance premiums.

Operating Results

The financial outcomes of a company's business activities, including revenue, expenses, and profit, over a certain period.

Sales Commissions

Fees paid to sales personnel based on the amount of sales revenue they generate.

Net Operating Income

Income generated from normal business operations after deducting operating expenses but before interest and taxes.