Increasing savings and ________ go hand in hand because they both ________
A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market
B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market
C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market
D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market
E) None of the above answers is correct.
B
You might also like to view...
Rent seeking
A) is the act of obtaining special treatment by the government to create economic profit. B) is the attempt to get rent from tardy renters. C) occurs when landlords advertise for apartments and other property for rent. D) is an attempt to sell a property and capture economic profit. E) occurs when a firm charges different prices for different units of its good or service.
According to the Keynesian model, an economy will have persistent, high unemployment if:
a. the government runs a budget deficit. b. markets operate freely. c. its total spending is too low. d. firms make too many investments.
When Americans invest in Russia, the income of Russians (that is, Russian GNP) rises by more than production in Russia (that is, Russian GDP)
a. True b. False Indicate whether the statement is true or false
Consider the market demand and supply given by the following: Qd=50 - P and Qs = 2.5 + 1.5P.
a) What is the equilibrium price and quantity? b) If the government sets a price floor of $25, what is the surplus/shortage? If the government buys the surplus, what would be the cost to the government?