What Is the Most Harmful Consequence to GDP from Interest

question 157

Multiple Choice

What is the most harmful consequence to GDP from interest rate ceilings?

• A) Lenders cannot earn a normal market return.
• B) Investment falls,dragging down GDP and future growth.
• C) Consumption increases and savings get too high.
• D) A surplus of savings occurs.

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Definitions:

Ending Inventory

The last recorded value of inventory held by a business at the end of its financial reporting period.

Accrued Expenses

These are expenses that have been incurred but not yet paid for, reflecting costs for goods or services received but for which an invoice has not been received or payment made.

Reported Net Income

The final profit figure disclosed in a company's income statement, after accounting for all revenues, expenses, taxes, and extra-items.

Ending Merchandise Inventory

The total value of a company's merchandise available for sale at the end of an accounting period.