If people decide that some country is now a more risky place to keep their saving, then at the original interest rate in that country there is a
a. surplus of loanable funds, so the interest rate increases.
b. surplus of loanable funds, so the interest rate decreases.
c. shortage of loanable funds, so the interest rate increases.
d. shortage of loanable funds, so the interest rate decreases.
c
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Why would a policymaker risk inflation if workers can just renegotiate their wages?
A) There is a change that workers will not fully anticipated the impact of the policy. B) The policymakers want to look like they are actively involved in the economy. C) Inflation is not a high price to pay in the economy. D) The policymakers do not believe that the workers can renegotiate.
If the economy is on the LM curve, but is to the right of the IS curve, aggregate output will ________ and the interest rate will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
What is the difference between money, income, and wealth?
What will be an ideal response?
The adult non-institutionalized population in the town of Bedrock is 75 thousand. Within Bedrock, 5 thousand are unemployed, and 40 thousand are employed. Calculate the number of people not in the labor force