Falling interest rates can
A) increase a firm's stock price, which causes firms to issue more stock shares, and thus increases funds for investment.
B) raise the cost of borrowing for firms and decrease investment.
C) raise the cost of buying new homes and fewer new homes will be purchased.
D) lower the cost of buying new homes and fewer new homes will be purchased.
Answer: A
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An indifference curve will become ________ the origin the more that the consumer considers the two goods as substitutes
A) less bowed-in towards B) more bowed-in towards C) less bowed-out from D) more bowed-out from
Explain why firms' short-run marginal cost curves often initially decreases and then increases
What will be an ideal response?
In an all-currency economy in which real output and the real interest rate are fixed and the rates of money growth and inflation are constant, the inflation rate equals
A) the real interest rate. B) the nominal interest rate. C) the growth rate of the nominal money supply. D) the level of real seignorage revenue.
Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that:
A. higher education is an exception to the law of demand. B. the supply of education provided by GSU has also increased over the 20-year period. C. school-age population, incomes, and preferences for education have changed over the 20- year period. D. GSU's supply curve of education is downsloping.