In the "cost of capital channel" of monetary policy, a lower interest rate __________ spending

A) raises consumption
B) raises investment
C) lowers consumption
D) lowers investment


B

Economics

You might also like to view...

The difference between a demand deposit and a NOW account is that

A) checks may not be written against NOW account balances. B) demand deposits pay no interest. C) NOW accounts pay no interest. D) checks may not be written against demand deposit balances.

Economics

Write the formula to find the present value of $x to be paid in n years

Economics

Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States is represented by the following set of equations:QS = -25 + 10PQD = 875 - 5PIf the United States can import MP3 players from the rest of the world at a per unit price of $50, how many MP3 players will be produced in the United States?

A. 925 B. 525 C. 625 D. 475

Economics

A difference between economic regulation and social regulation is that

A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.

Economics