As the real interest rate decreases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. decreases; increases
B. does not change; does not change
C. increases; decreases
D. increases; increases
Answer: A
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A bank's revenue comes from all of the following EXCEPT
A) interest earned on vault cash. B) fees for services provided. C) interest on loans. D) interest on securities.
The production possibilities frontier represents
A) all combinations of consumption and leisure for fixed output. B) all equally affordable combinations of consumption and leisure for a given wage. C) all technologically feasible combinations of consumption and leisure. D) all equally liked combinations of consumption and leisure.
Monoploy
What will be an ideal response?
For which of the following goods are consumers likely to have the most elastic demand?
A. clothing B. sweaters C. wool sweaters D. purple wool sweaters