Which of the Following Decreases in Response to the Interest-Rate

question 57

Multiple Choice

Which of the following decreases in response to the interest-rate effect from an increase in the price level?

• A)both investment and consumption
• B)consumption but not investment
• C)investment but not consumption
• D)neither investment nor consumption

---

Definitions:

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, considering only the revenues and costs directly attributable to the segment.

Absorption Costing

A financial recording technique that incorporates all expenses related to production, such as direct materials, direct labor, and variable as well as fixed manufacturing overhead costs, into the product's cost.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) assigned to a single unit of product.