When the Interest Rate in the U

question 261

Multiple Choice

When the interest rate in the U.S. decreases as a result of expansionary monetary policy, investment spending _____ and consumption _____ .

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Insurance

A contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

Schedule E

A tax form used to report income and losses from rental property, royalties, partnerships, S corporations, estates, and trusts.

Net Loss

The result when a company's or individual's expenses exceed their income.

Net Income

The total earnings of an individual or corporation, after all taxes and deductions have been subtracted from total revenue.