If people (who used to neither borrow nor save) are now saving for their retirement, then this will cause the equilibrium interest rate
A. to fluctuate wildly.
B. to fall.
C. to remain constant.
D. to rise.
Answer: B
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If a firm in a competitive market doubles its number of units sold, total revenue for the firm will
a. more than double. b. double. c. increase but by less than double. d. may increase or decrease depending on the price elasticity of demand.
In the U.S., loans made by Federal Reserve to banks fall in the categories of:
A. reserves. B. discount loans. C. discount loans and foreign exchange reserves. D. discount loans and reserves.
In the definition of GDP, the words "total market value" refer to total
A) dollar value at base prices. B) dollar value at current prices. C) subjective value. D) objective value. E) a and d
An increase in the price of IBM personal computers is likely to
A. decrease the demand for IBM computers. B. increase the demand for Apple computers (Macs). C. increase the demand for IBM computers. D. decrease the demand for Apple computers (Macs).