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1. The decision-making process starts with gathering information.
2. Procrastination is an example of an economic influence on decision making.
3. Higher interest rates result in higher costs of borrowing money.
4. Rising prices causing lower buying power is referred to as an inflation risk.
5. Interest earned on savings may be referred to as the "time value of money."
6. The final step of the decision-making process is:
evaluating the results.
identifying the problem.
selecting the best course of action.
7. Changes in the buying power of the dollar are measured by:
the unemployment rate
the money supply.
the consumer price index.
8. Consumer spending is likely to rise when:
unemployment is high.
interest rates are low.
people are putting more money into savings accounts.
9. Investments that may be difficult to convert to cash quickly have a high (fill in the blank) risk.
10. What a person gives up when making a decision is commonly called:
the time value of money.
a personal risk.
an opportunity cost.