This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: At higher rates of interest A) businesses demand more investment because there are more funds ... (Read 88 times)

oliviahorn72

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

A


oliviahorn72

  • Hero Member
  • *****
  • Posts: 579
Reply #2 on: Jun 30, 2018
Correct answers!


Qarqy

  • Sr. Member
  • ****
  • Posts: 313
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ... Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ...
Osmosis: Water moves from an area of low solute concentration to an area of higher solute ... Osmosis: Water moves from an area of low solute concentration to an area of higher solute ...
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Post-term birth rates, by province/territory, Canada Post-term birth rates, by province/territory, Canada
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
Video: Dissociative Disorders (Part 3)

For a complete list of videos, visit our video library