Holding all other things constant, when the price level falls, interest rates:
a. rise and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
b. rise and firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding.
c. falls and firms want to borrow less for new plants and equipment and households want to borrow more for homebuilding.
d. falls and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding.
d
You might also like to view...
The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is $2.00 per pound. A worker costs $1,200 per month
How many workers does Peter hire to maximize his profit? A) zero B) one C) three D) four
When represented graphically, the government's demand for funds curve is
a. downward sloping b. upward sloping c. vertical d. initially downward sloping, then upward sloping e. initially rightward sloping, then downward sloping
In this graph, why is there a profit?
a. C is equal to the ATC at q*.
b. P* is equal to D at 0.
c. ATC is more than the MR at q*.
d. P* is more than C at q*.
Medicare is an example of a third-party payment for medical services that
A. causes providers to supply less of medical services than they would without the payment. B. causes buyers to consume more of medical services than they would without the payment. C. causes the price of medical services to rise for the consumer once the payment is provided. D. does not cause any change in the equilibrium position for medical services which existed without the subsidy.