What are the factors that can shift the supply of financial capital to a certain investment?
a. if people do not want to alter their existing levels of risk
b. if the riskiness or return on one investment is the same as other investments
c. if the riskiness or return on one investment changes relative to other investments
d. if people do not want to alter their existing levels of consumption
c. if the riskiness or return on one investment changes relative to other investments
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According to the Taylor rule, if there is a recessionary gap of 2 percent of potential output and inflation is 4 percent, what real interest rate will the Fed set?
A. 0.015 B. 0.025 C. 0.03 D. 0.02
If the quantity of one good that must be forgone increases as successive units of another good are produced, then there is said to be increasing opportunity cost between the two goods
a. True b. False Indicate whether the statement is true or false
Which of the following is not a result of the theory of land rent?
A. Capital invested on any plot of land must yield the same return as capital invested on any other plot of land. B. The difference between the costs of producing on any two pieces of land must equal the difference between their rents. C. Marginal land earns no rent. D. Productive land earns more rent than marginal land, which earns more rent than nonproductive land.
Company X sells sugar to company Y for $50,000. Company Y uses the sugar to make chocolate bars, selling them to consumers for $150,000. The total contribution to GDP is:
A) $200,000. B) $100,000. C) $30,000. D) $150,000. E) $50,000.