When Interest Rates Rise

question 38

Multiple Choice

When interest rates rise

• A) borrowing costs increase, and total planned real expenditures decline.
• B) borrowing costs increase and total planned real expenditures increase.
• C) borrowing costs decline, and total planned real expenditures increase.
• D) borrowing costs decline, and total planned real expenditures decline.

---

Definitions:

Implied Warranty

A legal concept that assumes a promise by a seller that the goods being sold meet certain quality standards, even if not explicitly stated.

Merchantability

An implied warranty that a product will meet reasonable expectations of quality and usability for the purpose it was sold for.

Express Warranty

A statement by a seller about the quality, condition, or performance of a product that forms part of the contractual agreement between the buyer and seller.

Super Store

A large retail establishment offering a wide variety of goods, often at lower prices, under one roof.