This topic contains a solution. Click here to go to the answer

Author Question: At higher rates of interest A) businesses demand more investment because there are more funds ... (Read 83 times)

oliviahorn72

  • Hero Member
  • *****
  • Posts: 579
At higher rates of interest
 
  A) businesses demand more investment because there are more funds available to invest.
  B) businesses demand more investment because future profitability is likely to be greater.
  C) households save more because they get a greater return on their savings.
  D) households save less because it is more expensive to save.

Question 2

An individual holds 10,000 in a non-interest-earning checking account, and the overall price level rises significantly. Other things being constant, we would expect
 
  A) the individual's real wealth to decrease and consumption to decline.
  B) no change in the individual's real wealth but a decline in real national product.
  C) the individual's stock of real wealth to decrease but real national income to increase.
  D) the individual's wealth to increase.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Qarqy

  • Sr. Member
  • ****
  • Posts: 313
Answer to Question 1

C

Answer to Question 2

A




Qarqy

  • Sr. Member
  • ****
  • Posts: 313

 

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

For a complete list of videos, visit our video library