A decrease in the interest rate will:
a. increase the amount of money supplied by lenders
b. decrease the amount of money supplied by lenders.
c. have no effect on the amount of money supplied by lenders.
d. have an ambiguous effect on the amount of money supplied by lenders.
b
You might also like to view...
If the quantity of money demanded exceeds the quantity of money supplied, then the
A) equilibrium interest rate will decrease. B) equilibrium interest rate will increase. C) equilibrium interest rate stays the same. D) effect on the equilibrium interest rate is indeterminate.
Hester owns an ice cream sho
A) $2. B) $20. C) $10. D) $40. E) $4.
Calculate the elasticity of supply when an increase in demand causes the equilibrium price and quantity to change from $2.00 and 500 to $2.80 and 1,000, respectively
The precautionary demand for money is:
(a) An active balance. (b) Directly related to interest rates. (c) Negatively related to income. (d) An idle balance