An interest rate ceiling is likely to cause
a. inflation
b. optimal allocation of investment
c. increased opportunities for poor people to get loans
d. higher savings
e. all of the above
A
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The minimum amount that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested, is referred to as
A) the explicit costs of production. B) net income. C) net worth. D) a normal rate of return.
If two individuals have identical schooling, their incomes will be equal
a. True b. False Indicate whether the statement is true or false
Suppose that when the price of good X increases from $800 to $850, the quantity demanded of good Y increases from 65 to 70 . Using the midpoint method, the cross price elasticity of demand is about
a. -1.2, and X and Y are complements. b. -0.1, and X and Y are complements. c. 0.1, and X and Y are substitutes. d. 1.2, and X and Y are substitutes.
If marginal costs are rising
A) total fixed costs are falling B) average fixed costs are constant. C) average fixed costs are rising D) none of these choices.