Which One of the Following Statements Concerning Interest Rates Is

question 22

Multiple Choice

Which one of the following statements concerning interest rates is correct?

• A) A decrease in the money supply will cause interest rates to decline.
• B) A federal budget surplus will cause interest rates to decline.
• C) Economic expansions will cause interest rates to decline.
• D) Rising interest rates in foreign countries will cause U.S. interest rates to decline.

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Definitions:

Free Goods

Goods that are abundant and available without cost; they are not scarce in relation to demand, such as air and sunlight.

Offered by Firms

Describes the goods or services that companies make available to consumers in the marketplace.

Tuition

The fee that educational institutions charge for instruction and training, often paid per term or year.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, or product).