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Author Question: If the real interest rate increases, there is A) an upward shift of the consumption function. B) ... (Read 91 times)

jace

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on: Jun 29, 2018
If the real interest rate increases, there is
 
  A) an upward shift of the consumption function.
  B) a movement downward along consumption function.
  C) a change in the slope of the consumption function.
  D) a movement upward along the consumption function.
  E) a downward shift of the consumption function.

Question 2

Suppose that the equilibrium nominal interest rate is 4 percent and the equilibrium quantity of money is 1 trillion. At any interest rate above 4 percent,
 
  A) less than 1 trillion will be demanded and bond prices will fall.
  B) more than 1 trillion will be supplied and bond prices will fall.
  C) there is a shortage of money and the interest rate will rise.
  D) more than 1 trillion will be supplied and the interest rate will rise.
  E) less than 1 trillion will be demanded and bond prices will increase.


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mjenn52

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Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

E


jace

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

Dinolord

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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