Author Question: If the market interest rate increases, then a. the cost of borrowing increases and so saving falls ... (Read 104 times)

fnuegbu · **on:** Jun 30, 2018

If the market interest rate increases, then
a. the cost of borrowing increases and so saving falls
b. the opportunity cost of consuming a good in the future increases and saving, therefore, increases
c. the opportunity cost of consuming a good in the future increases and saving, therefore, falls
d. the reward for saving diminishes and so present consumption increases
e. the reward for saving increases and so saving increases

Question 2

Dumping refers to selling a product abroad for less than the cost of production.
a. True
b. False