As inflation rates increase, borrowing and lending contracts tend to
a. increase in size.
b. decrease in size.
c. decrease in length of time.
d. increase in length of time.
c
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The Fed conducts an open market operation and buys $50,000 of government securities from Commerce Bank. The desired reserve ratio is 25 percent. What is the change in Commerce Bank's total reserves and its excess reserves?
What will be an ideal response?
As the price of capital falls, the quantity of capital that producers are willing and able to offer falls
a. True b. False Indicate whether the statement is true or false
If a bank had demand deposits of $50 million and it faced a 25 percent required reserve ratio, it would be required to have how many reserves?
a. $50 million b. $37.5 million c. $25 million d. $12.5 million
The term "satisficing" indicates an optimal choice
a. True b. False Indicate whether the statement is true or false