An increase in the real interest rate will
A) most likely lower the reward to savings.
B) most likely lower the cost of borrowing.
C) most likely lower consumers' purchases of durable goods.
D) cause consumers to spend more and save less.
C
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If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals
A) $100 billion. B) $40 billion. C) $100 trillion. D) $2.5 trillion. E) $4 trillion.
Many of the Founding Fathers considered the emancipation of slaves to be
(a) a necessary evil in overcoming the British during the war. (b) less important than the issues of whether blacks should be prevented from coming to the United States and whether freed slaves should be deported. (c) paramount in establishing the new nation on a solid ideological foundation. (d) a states' rights issue.
In a price-leadership oligopoly, it is much simpler for the price leader to identify its dominant strategy when
a. at least one price follower has a terminal strategy b. it expects competition from the other firms c. it expects other firms to match its prices d. the government actively seeks antitrust penalties e. price equals marginal cost
What is enacted when discontented sellers, feeling that prices are too low, appeal to legislators to keep prices from falling?
A. Rent controls B. Price ceilings C. Price floors D. Subsidies