When people reduce their rate of time preference
A) more credit is made available in the banking system.
B) less credit is made available in the banking system.
C) the demand for credit shifts right.
D) the supply of credit shifts left.
A
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Suppose the nominal interest rate is 5% and the rate of inflation is 5%. The real interest rate is therefore
A) 0%. B) 1%. C) 5%. D) 6%.
The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate
a. true b. false
Which of the following actions did Congress NOT take in the 1930s, in an effort to prevent future financial crises like the stock market crash of 1929?
A. Glass-Steagall Banking Act B. Formation of the SEC C. Formation of the FDIC D. Federal Reserve Act
The cost of capital and interest expense are the same thing
Indicate whether the statement is true or false