Your textbook authors argue that, other things constant, ...

[arivle123]

Your textbook authors argue that, other things constant, entrepreneurs respond to a fall in interest rates by
 
  A) paying less attention to long term profitability.
  B) engaging in irrational business behavior.
  C) investing in capital goods.
  D) making all of the above choices.

Question 2

When interest rates are free from central bank manipulation, and fall due to an increase in household savings, this
 
  A) provides an incentive for government to create a budget surplus.
  B) sends a green light signal for businesses to increase investment.
  C) has little impact on the macroeconomy.
  D) creates a cluster of errors and an inevitable recession.

[ririgirl15]

Answer to Question 1

C

Answer to Question 2

B