Everything else remaining unchanged, what is likely to happen to the credit demand curve of a software producing firm if:
a. there is an increase in the real interest rate?
b. they plan to expand production in near future?
a. If there is an increase in the real interest rate, there will be an upward movement along the credit demand curve of the software manufacturer.
b. If they plan to expand production in near future, the credit demand curve of the software firm is likely to shift to the right.
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A market is classified as monopolistically competitive when
A) there is a barrier that blocks entry by other firms. B) a small number of firms compete. C) many firms produce the same product. D) many firms produce a slightly differentiated product. E) there is one firm that sells a good or service with no close substitutes.
The behavior of historical cost curves says nothing about the cost advantages or disadvantages of a single large firm
a. True b. False Indicate whether the statement is true or false
Average total cost equals
A) TC/Q. B) TVC/Q. C) TFC/Q. D) change in total cost/change in output.
With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the foreign currency is
A) 3 percent. B) 10 percent. C) 13.5 percent. D) 17 percent.