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 89 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?

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

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Abortion Rates by State, 2008 Abortion Rates by State, 2008
Community colleges have opened higher education to millions of students who would not otherwise have ... Community colleges have opened higher education to millions of students who would not otherwise have ...
The growth in demand for energy use is met by burning fossil fuels The growth in demand for energy use is met by burning fossil fuels
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
Preterm birth rates, by single and multiple births, Canada Preterm birth rates, by single and multiple births, Canada
Prevalence rates of obesity in the United States, 2014 Prevalence rates of obesity in the United States, 2014
Video: Brain Anatomy Animation (Part 2 of 2)

For a complete list of videos, visit our video library