Asked by Derin Jabour on Apr 27, 2024
Verified
_____ is the reward savers earn for deferring consumption.
A) Dividend
B) Wage
C) Rent
D) Profit
E) Interest
Deferring Consumption
The act of postponing spending money on consumption goods to save or invest for future use.
Interest
The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specific period.
Dividend
A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.
- Comprehend the role of interest rates on saving and consumption.
Verified Answer
TS
Tonika SmithMay 03, 2024
Final Answer :
E
Explanation :
Interest is the reward savers earn for deferring consumption. It is the money paid regularly at a particular rate for the use of money lent or for delaying the repayment of a debt. Dividend is a distribution of a portion of a company's earnings to its shareholders, wage is a payment for labor or services, rent is a payment for the use of property or land, and profit is the financial gain obtained from a business.
Learning Objectives
- Comprehend the role of interest rates on saving and consumption.