A debtor's quantity of credit demanded and the rate of interest are likely to be:
A) positively correlated.
B) unrelated.
C) negatively correlated.
D) positively related if the rate of interest is below 10% and negatively related if it is above 10%.
C
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A transfer payment is a sum of money
A. spent by government for new goods and services. B. shifted between members of a household. C. given by government without a good or service in exchange. D. moved between companies for goods and services. E. required to pay taxes.
Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
The cross price elasticity of demand for a good is the percentage change in the quantity demanded in response to a given percentage change in
A) income. B) the price of that good. C) the price of another good. D) the quantity demanded of another good.
If the money supply is $80 billion, the velocity of money is 5, and real GDP is $320 billion, then the price level equals:
a. 51.20. b. 20. c. 4. d. 2.75. e. 1.25.