Assuming all else equal, if the real interest rate decreases, it will lead to:
A) a decrease in the quantity of credit demanded by a firm.
B) the credit demand curve of a firm to shift to the right.
C) an increase in the quantity of credit demanded by a firm.
D) the credit demand curve of a firm shifts to the left.
C
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The price of beef increased by 20 percent and the quantity supplied increased by 10 percent. The supply of beef is
A) elastic. B) perfectly elastic. C) perfectly inelastic. D) inelastic. E) unit elastic.
Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation
Points C, D, E, and H on the above graph show:
A. a constant trade-off between food and clothing. B. possible combinations of food and clothing. C. unattainable combinations of food and clothing. D. an inefficient allocation of society's scarce resources.
Refer to the information below. The economic profits of Harvey's firm in the first year were:
Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. A. $155,000 B. $160,000 C. $220,000 D. $280,000