If Autonomous Investment Expenditures Decline Because of Higher Interest Rates

question 102

Multiple Choice

If autonomous investment expenditures decline because of higher interest rates

• A)income increases
• B)the rate of return declines
• C)autonomous consumption declines
• D)aggregate demand increases
• E)aggregate demand decreases

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or completion, used in determining the value of inventory on hand.

LIFO

An inventory valuation method standing for Last-In, First-Out, where the most recently acquired items are assumed to be sold or used first.

FIFO

FIFO (First In, First Out) is an inventory valuation method where the oldest inventory items are recorded as sold first.

Fair Value

The estimated market value of an asset or liability, based on current market prices.