Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
a. It increases.
b. It decreases.
c. It does not change.
d. It depends entirely on the interest rate.
a
You might also like to view...
A 100 acre wood used by four people for collecting firewood is common property. The socially efficient use of the wood could be achieved by assigning property rights
a. only if they go to whichever of the four most values the wood. b. only if they are divided equally among all four users. c. only if the are divided according to those who have been using it the longest. d. to any of all of the four.
From the beginning of 2007, the value of the U.S. dollar
a. dropped sharply against major currencies. b. increased mildly against major currencies. c. remained stable relative to major currencies. d. fluctuated with no major trend against major currencies.
Unions contribute to
a. structural unemployment but not the natural rate of unemployment. b. the natural rate of unemployment but not structural unemployment. c. both structural unemployment and the natural rate of unemployment. d. neither structural unemployment nor the natural rate of unemployment.
If Pat's income increased from $250,000 to $500,000 and his consumption increased from $200,000 to $300,000, what was his marginal propensity to consume?
a. 0.4
b. 0.6
c. 0.8
d. 0.9