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Author Question: If the interest rate increases, the a. cost of saving will increase b. cost of borrowing will ... (Read 45 times)

ec501234

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on: Jun 30, 2018
If the interest rate increases, the
 a. cost of saving will increase
  b. cost of borrowing will increase
  c. firm should decrease the amount of capital it owns by selling capital
  d. firm should acquire more capital
  e. supply of loanable funds will increase

Question 2

The current account shows international transactions in goods and services, the capital account shows international transactions involving the flow of financial assets, and the official reserve transactions account shows movement of international reserves.
 a. True
  b. False


ally

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


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