A decrease in interest rates would
A. increase the demand for capital.
B. decrease the demand for capital.
C. increase the supply of capital.
D. None of the choices are true.
D. None of the choices are true.
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When looking at this graph for the welfare effects of a subsidy, which area represents the cost of the subsidy to the government?
a. area a + b + c + d
b. area b + e + f + c + g
c. area f
d. area a + b – c
If a country’s GDP DECREASES, but its debt INCREASES during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.
A. decrease because GDP decreased B. decrease C. increase or decrease D. increase
Dumping means selling goods in a foreign market at lower prices than those charged in the home market.
Answer the following statement true (T) or false (F)
The economy will not reach and maintain its goals of full employment and price stability unless the economy is
A. Below full employment and the price level is stable. B. Above full employment and the price level is stable. C. At full employment and the price level is stable. D. None of the choices are correct.