An increase in the interest rate will cause
A) planned investment spending to increase.
B) planned investment spending to decrease.
C) the investment function to shift out.
D) the investment function to shift in.
B
You might also like to view...
Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. If interest rates on newly-issued government bonds increase, then the price of your bonds will ________ and the price of the shares you own will ________.
A. decrease; not change B. increase; increase C. increase; not change D. decrease; decrease
Bob's utility function is shown in the above figure. He currently has $100 worth of property, but there is a 50% chance that all of it will be stolen. An insurance company offers to reimburse Bob for his loss if the money is stolen
What is the most that Bob would pay for such a policy? Explain.
A nation benefits from international trade if it:
A. exports more than it imports. B. imports more than it exports. C. imports goods for which it is a low opportunity cost producer. D. exports goods for which it is a low opportunity cost producer.
Shifts in demand away from French products and toward U.S. products (caused by forces other than changes in the exchange rate) would result in extra attempts to
A. buy euros and sell dollars. B. buy both euros and dollars. C. sell both euros and dollars. D. sell euros and buy dollars.