If the Real Interest Rate in the Economy Is I

question 64

Multiple Choice

If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:

• A)r is greater than i.
• B)i is greater than r.
• C)r falls.
• D)i rises.

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Definitions:

Quick Ratio

An assessment of a firm's capacity to fulfill its immediate liabilities using its most convertible assets, excluding stock.

Source Of Cash

Various origins from which a company or individual can acquire cash, including operations, financing, and investing activities.

Accounts Payable

Monetary obligations a company has to its suppliers for items bought on credit, intended to be paid within a short period.

Inventory

The total stock of goods and materials held by a company, intended for sale or used in production.