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Author Question: Which of the following best explains why there is a positive relationship between the interest rate ... (Read 62 times)

cyc028

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on: Oct 12, 2022

Question 1

Households' supply of financial capital is derived from
◦ their supply of human capital.
◦ firms' demand for physical capital.
◦ their supply of physical capital.
◦ firms' demand for financial capital
◦ their supply of saving.

Question 2

Which of the following best explains why there is a positive relationship between the interest rate and the amount of household savings supplied to the financial capital market?
◦ An increase in the interest rate causes the investment demand curve to shift up.
◦ A decrease in the interest rate increases the opportunity cost of current spending, which leads to an increase in desired saving.
◦ An increase in the interest rate causes the savings demand curve to shift up.
◦ An increase in the interest rate increases the opportunity cost of current spending, which leads to an increase in desired saving.
◦ An increase in the interest rate increases the opportunity cost of current spending, which leads to a decrease in desired saving.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by cyc028 on Oct 12, 2022

xinyifff

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cyc028

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Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)

sarah_brady415

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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