A higher real interest rate ________ saving and ________ consumption spending.
A. increases; decreases
B. increases; increases
C. does not change; does not change
D. decreases; increases
Answer: A
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Which among the following is an example of "economizing" behavior?
A) A ski resort owner who is deciding whether or not to remain in operation during a season with abnormally low snowfall B) The board of directors of a major bank who are considering opening new branches in a neighboring state C) The planning committee of a conservative church parish, which is considering the reintroduction of the Post-Tridentine, Latin-language mass D) A family comparing the costs of a vacation in the mountains to the cost of a vacation at the beach E) All of the above.
Calculate the multiplier and the change in real GDP
What will be an ideal response?
During the stock market boom of the late 1920s stock prices ______
a. rose at about the same rate as dividends b. rose faster than dividends c. rose more slowly than dividends d. there is, surprisingly, not enough information to know what happened to pricesrelative to dividends
Which factor of production receives the greatest share of the U.S. national income?
A. Land B. Labor C. Capital D. Entrepreneurship