Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to quantity of money demanded if the interest rate increases?
A. It increases.
B. It decreases.
C. It does not change.
D. The demand for money will increase.
Answer: B
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A country's imports of goods minus its exports of goods is reported in the goods balance
a. True b. False Indicate whether the statement is true or false
If the price of a good increases, all else equal, consumers perceive
a. an increase in purchasing power if the good is an inferior good. b. an increase in income if the price increase occurs for a normal good. c. a decrease in purchasing power. d. a net gain in purchasing power if they decrease consumption of some goods.
The nominal interest rate is:
A. the interest rate paid to borrowers. B. not adjusted for inflation. C. the interest rate paid by savers. D. the price level adjusted interest rate.
Suppose Stephen's first novel makes the New York Times bestseller list. Regression to the mean implies that his second novel:
A. won't be as popular as his first novel. B. will be even more popular than his first novel. C. will have a similar plot to his first model. D. will be a complete flop.