When interest rates rise
A. borrowing costs decline, and total planned real expenditures increase.
B. borrowing costs decline, and total planned real expenditures decline.
C. borrowing costs increase, and total planned real expenditures decline.
D. borrowing costs increase and total planned real expenditures increase.
Answer: C
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Suppose I am willing to pay $300 for a pair of Rollerblades and I purchase them on sale for $200 . My consumer surplus is
a. $300 b. 3/2 c. $100 d. $200 e. $0
The purchase and sale of government securities by the Fed is called:
A. Federal funds market B. Open market operations C. Money market transactions D. Term auction facility
U.S. GDP in 2012 was about:
A. $8.1 trillion B. $15.7 trillion C. $890 billion D. $1200 billion
"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries
Indicate whether the statement is true or false