Other things the same, an increase in the U.S. interest rate causes the quantity of loanable funds supplied to
a. rise because net capital outflow and domestic investment rise.
b. rise because national saving rises.
c. fall because net capital outflow and domestic investment rise.
d. fall because national saving falls.
b
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Cash and similar assets held to meet depositor withdrawals or payments are called:
A. bank reserves. B. money. C. deposits. D. checking accounts.
If you are anticipating having to pay $100,000 to a lender 10 years from now and the interest rate rises, the present value of this sum
A. falls. B. rises. C. first rises, then falls. D. remains unchanged.
The "anchoring" phenomenon observed by behavioral economists refers to the fact that people's estimates of the value of things are affected by:
A. Recently considered information B. Their childhood memories C. Irrelevant data always D. Relevant information solely
Two corporations (TruBlu and FlyByNight) issue perpetuities that both pay $1,000 per year, but the market price of the FlyByNight bonds are much lower
The difference in the bond prices may reflect the belief that the bonds issued by FlyByNight are ________ risky when compared to the TruBlu bonds. A) less B) more C) equally D) none of the above