For a lender, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption.
B) reduces current consumption and has an uncertain effect on future consumption.
C) has an uncertain effect on current consumption and increases future consumption.
D) has an uncertain effect on both current and future consumption.
C
You might also like to view...
At a perfectly competitive firm, all of the following is true of the MRP curve EXCEPT
A) the MRP curve is the derived supply of labor. B) the MRP curve shifts leftward when labor productivity falls. C) the MRP curve shifts rightward when the product price rises. D) the MRP curve shifts leftward when the demand for the final product falls.
Public goods are both rival and nonexclusive
a. True b. False
Brady, a farmer, exchanges three bushels of apples for two pairs of shoes made by Jeff, a cobbler. We can say that Brady and Jeff are parts of a: a. barter economy
b. capitalistic economy. c. socialistic economy. d. mixed economy.
The most important economic concept to consider when deciding whether to produce a product domestically or import the product is
A. law of supply. B. law of demand. C. opportunity cost. D. law of increasing cost.