Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
A. It increases.
B. It decreases.
C. It does not change.
D. It depends entirely on the interest rate.
Answer: A
You might also like to view...
A "great merger movement," whereby firms combined with former rivals to become large firms, began in the 1890s. Who was the first President to look to bigger government as a way to cope with the economic power of these concentrated industries?
(a) Woodrow Wilson (b) Herbert Hoover (c) Theodore Roosevelt (d) Franklin Roosevelt
A price floor keeps a price:
a. from rising above a certain level. b. from decreasing below a certain level. c. at a stabilized point. d. from increasing or decreasing.
Which of the following is a determinant of Investment spending?
A. Disposable income B. Expected future income C. Real Income D. Expected profitability
The price of a McDonald's dinner is $5; the price of a Burger King dinner is $5. The marginal utility you would get from the next McDonald's dinner is 15; the marginal utility you would get from the next Burger King dinner is 20. You should:
A. consume more Burger King dinners. B. consume more McDonald's dinners. C. not consume either Burger King or McDonald's dinners. D. realize you cannot make a rational decision.