The derived demand curve for loans slopes downward because as interest rates
A. fall, future income becomes less valuable.
B. fall, investors develop pessimistic expectations.
C. fall, future income becomes more valuable.
D. rise, investors become pessimistic.
Answer: C
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Price cap regulation
A) does not provide incentives to firms to minimize their costs because firms cannot change prices. B) sets the maximum price these firms can charge. C) gives firms the incentive to exaggerate their costs. D) Both answers A and C are correct. E) Both answers A and B are correct.
Gross domestic product (GDP) is the ________ in a given time period
A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy
The basic organizing framework for both microeconomic and macroeconomic models is
A. purely competitive markets. B. government planning of the economy. C. demand and supply. D. democratic socialism. E. All of these responses are correct.
An example of a biomass fuel is
(a) coal. (b) nuclear fuel. (c) manure. (d) oil.