If the interest rate increases, the
a. cost of saving will increase
b. cost of borrowing will increase
c. firm should decrease the amount of capital it owns by selling capital
d. firm should acquire more capital
e. supply of loanable funds will increase
B
You might also like to view...
Which of the following correctly identifies an argument against globalization?
A) Globalization limits the bundle of goods and services available in smaller countries. B) Globalization leads to an exploitation of developed countries. C) Globalization can lead to a loss of indigenous culture and tradition. D) Globalization works against free trade.
Workers laid off as a result of a recession suffer
A) structural unemployment. B) seasonal unemployment. C) natural unemployment. D) cyclical unemployment. E) frictional unemployment.
Elaborate on your answer to the previous question by using demand curves. For which good does demand change and for which good does the quantity demanded change?
What will be an ideal response?
Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain