Consumers and Businesses with Debt Overhang Are Likely to _____

question 145

Multiple Choice

Consumers and businesses with debt overhang are likely to _____ their borrowing and _____ their spending.

• A)increase; decrease
• B)increase; increase
• C)decrease; decrease
• D)decrease; increase

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Definitions:

Receivable

An amount of money owed to a company by its customers or clients for goods or services delivered but not yet paid for.

Inventory Increase

A rise in the quantity of products or materials that a company has available for sale or use, which is often an indicator of production levels or sales expectations.

Cash Discount

A reduction in the amount due by a buyer if payment is made within a specified period.

Credit Financing

The process of borrowing funds from lenders to finance business operations, purchases, or investments, typically through loans or issuing bonds.