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 75 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?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Longer regions have more crossovers and thus higher recombinant frequencies Longer regions have more crossovers and thus higher recombinant frequencies
Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s Young adults increase in self-esteem between the ages of 18 and 25, according to this longitudinal s
The limbic system is located within the higher brain, or cerebrum. The limbic system is located within the higher brain, or cerebrum.
How to calculate simple interest (Part 1) How to calculate simple interest (Part 1)
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Although the highest rates of disordered eating patterns occur among females, males are not immune Although the highest rates of disordered eating patterns occur among females, males are not immune
Video: Stroke volume - preload, sarcomere length and Frank -Starling law

For a complete list of videos, visit our video library