According to loan able funds framework, if business decides to eliminate or postpone expansion plans reducing their need to borrow?
A. There will be excess demand in the loan able fund market
B Interest rates will increase (WA)
C. Interest rates will decrease
D. Interest rates will not change
E. Interest rates either can rise or fall
C. Interest rates will decrease
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An increase in the U.S. demand for imports will ________ the supply of dollars and lead the dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
Refer to Table 17-2. The marginal revenue product of labor from the third unit of labor is
A) $5,460. B) $1,560. C) $1,260. D) $780.
Which of the following claims is consistent with the views of mainstream economists?
a. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily fall. b. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will temporarily rise. c. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently fall. d. If we increase the rate of inflation from 3 percent to 6 percent, then the rate of unemployment will permanently rise.
The cross elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be:
A. Zero B. A positive number C. A small negative number D. A large negative number