According to the Bureau of Economic Analysis, household disposable income fell by 0.3 percent of August, 2012. If all else remains the same, what is the likely impact of this fall on the real interest rate?

A) The real interest rate will rise.
B) The real interest rate will fall.
C) A change in household disposable income will have no impact on the real interest rate.
D) The impact on the real interest rate is ambiguous.


A

Economics

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Which of the following goods are available at highly economical prices because the use of mass production techniques substantially reduces their per unit production costs?

a. automobiles b. DVD players c. microwave ovens d. all of the above

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In long-run equilibrium for a single-price monopolist,

A. marginal revenue equals price. B. output is at the level where short-run and long-run marginal costs are the same. C. the plant size is always the one at the bottom of the long-run ATC curve. D. marginal cost equals ATC.

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"New industries need to be protected or they won't have the opportunity to grow up." This is a statement of the __________ argument for trade restrictions

A) national-defense B) infant-industry C) anti-dumping D) tariff E) none of the above

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Which of the following is not a tool of monetary policy?

a. open market operations
b. reserve requirements
c. changing the discount rate
d. increasing the government budget deficit

Economics