Other things constant, an increase in interest rates will
A) increase your incentive to borrow.
B) increase your incentive to save.
C) increase your incentive to buy a new car on credit.
D) reduce your incentive to save.
B) increase your incentive to save.
You might also like to view...
An optimal two-part tariff pricing schedule maximizes consumer surplus
Indicate whether the statement is true or false
Block pricing
A) is a form of nonlinear price discrimination. B) is pricing where one price is charged for the first block of units purchased, and different prices for subsequent blocks. C) can be either use increasing or decreasing prices for blocks purchased. D) All of the above.
In recent years, the largest trading partners of the United States have been
a. Germany, France, Spain, and the United Kingdom. b. Canada, Mexico, China, and Japan. c. Canada, Brazil, Argentina, and Chile. d. Russia, Venezuela, Saudi Arabia, and Indonesia.
Which of the following changes would decrease the present value of a future payment?
a. a decrease in the size of the payment b. an increase in the time until the payment is made c. an increase in the interest rate d. All of the above are correct.