The nominal interest rate increases by 5 percent. What is the effect on investment?
a. The real interest rate increases and investment increases
b. The real interest rate decreases and investment decreases.
c. The real interest rate increases and investment decreases.
d. Cannot be determined from the given information
d
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In Figure 3-2, a move from a point like B to a point such as D
A. is not possible. B. can be attained with a more efficient allocation of resources. C. can be attained if there is an improvement in technology. D. can be attained if unused resources are put into production.
Which of the following issues were not discussed in the recent Doha trade talks?
A) Eliminating export subsidies from agricultural products. B) Eliminating high tariffs and tariff escalation. C) Solving the conflicts of providing cheaper medicines to developing countries while promoting research and development. D) Establishing the basic framework for an all-encompassing world free trade agreement.
If more firms enter the telecommunications industry, we can expect the equilibrium price of telecom services to decrease and the equilibrium number of services to increase
a. True b. False Indicate whether the statement is true or false
What is one of the benefits of FDIC insurance?
a. Banks are more likely to manage their money carefully. b. It provides banks with an attractive place to invest their reserves. c. It drives down the interest rate. d. Banks are more stable, so the money supply is more stable.