The higher the interest rates
a. the more value individuals place on future dollars
b. the more value individuals place on current dollars
c. less investments will take place
d. does not affect the investment strategy
b
You might also like to view...
A country has a trade surplus when
A) imports exceed exports. B) imports equal exports. C) exports exceed imports. D) imports equal zero.
Panel (b) in Figure 6.1 reflects
a. low interest elasticity of money demand. b. money demand to be highly interest elastic. c. money demand to be completely interest insensitive. d. None of the above
The above figure shows a graph of the market for pizzas in a large town. If the price falls from $10 to $7 per pizza, the quantity of pizzas demanded will
A) increase by 20. B) decrease by 30. C) increase by 30. D) decrease by 10.
An imposition of tax by the government for funding welfare programs raises the cost of labor to firms as:
a. the demand for labor increases. b. the demand for labor decreases. c. the supply of labor decreases. d. the supply of labor increases. e. the opportunity cost of leisure increases.