Other things remaining the same, as the real interest rate increases,
A) firms will borrow more funds.
B) firms' demand for funds will not change.
C) the demand for loanable funds curve shifts leftward.
D) firms will purchase new capital with its own funds instead of taking a loan.
E) firms will borrow less funds.
E
You might also like to view...
The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 8.0 there is
A) dissavings of $0.5 trillion. B) dissavings of $15.5 trillion. C) savings of $15.5 trillion. D) savings of $0.5 trillion. E) dissavings of $7.5 trillion.
Substantial co-payments are typically not required as a part of the health care system in
A) the United States and Japan. B) Japan and Canada. C) Canada and the United Kingdom. D) Japan and the United Kingdom.
Economists call pensions “defined benefits” plans, because
a. pension distributions rise with the rise in the CPI b. pensions have traditionally been set as a fixed nominal dollar amount per year at retirement c. pensions are always adjusted yearly for inflation d. pensions are similar to borrowers who benefit from rising inflation
Adam Smith's pin factory illustrated the
A. advantages of economies of scale. B. disadvantages of economies of scale. C. importance of receiving quantity discounts. D. dangers of corporate bureaucracies.