If the proportion of bad borrowers increases,
A) the lending interest rate increases.
B) the lending interest rate decreases.
C) the borrowing interest rate increases.
D) the borrowing interest rate decreases.
C
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The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis. B) the price of good on the horizontal axis divided by the price of the good on the vertical axis. C) the marginal rate of substitution between the two goods in question. D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
Suppose market demand is Q = 1000 - 4p. If all firms have LRAC = 50 - 5q + q2, how many identical firms will there be when this industry is in long-run equilibrium?
What will be an ideal response?
The two basic types of government regulation are
A) regulation of natural monopolies and regulation of cartels. B) economic regulation and industry regulation. C) social regulation and labor law. D) social regulation and economic regulation.
The Phillips curve
a. was a single curve and relatively well-defined for the 1960s b. demonstrates how to achieve stable economic growth c. shows the trade-off between deficits and inflation d. relates the interest rate to investment e. becomes vertical at full employment