If a recession were to reduce the demand for loans, ceteris paribus,
A) the interest rate will increase.
B) the interest rate will not change.
C) the interest rate will decrease.
D) the number of loans will increase.
C
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If the price of vanilla ice cream decreases, it is likely that
a. demand for vanilla ice cream will increase b. demand for vanilla ice cream will decrease c. demand for chocolate ice cream will increase d. demand for chocolate ice cream will decrease e. the quantity demanded of vanilla ice cream will decrease
Which of the following would appear on the asset side of a commercial bank balance sheet?
a. Loans. b. Checkable deposits. c. Savings deposits. d. Net worth.
Considering only its direct effect on income, contractionary fiscal policy tends to:
A. decrease income and imports, raising the trade deficit. B. decrease income and imports, lowering the trade deficit. C. increase income and imports, lowering the trade deficit. D. increase income and imports, raising the trade deficit.
If marginal product is zero, we know that
A. total output is maximized. B. average product is also zero. C. average product is constant. D. total product is also zero.