--%>

Real interest rate in saving and investment

When the real interest rate : (w) is low, there are greater incentives to borrow and fewer incentives to lend. (x) is low, there are greater incentives to lend and fewer incentives to borrow. (y) equals the nominal interest rate + the expected rate of inflation. (z) is 3%, this automatically means that the nominal cost of borrowing equals 3%.

Can someone explain/help me with best solution about problem of Economics ...

   Related Questions in Microeconomics

  • Q : Determinants that consumers want to buy

    In addition to price, what are the other determinants that consumers want to buy?

  • Q : Competition and Rivalry When new firms

    When new firms enter an imperfectly competitive market, in that case the demand curves of the firms previously in the market will: (w) shift to the left. (x) shift to the right. (y) become vertical. (z) become horizontal.

    Q : Supply of good in competitive economy

    When the supply of a good shrinks in a competitive economy, there tends to be a raise in the: (1) Product price. (2) Incomes of producers. (3) Demand for resources. (4) Quantity supplied. Can someone please help me

  • Q : Problem Set #2 Graduate Level Problem

    Graduate Level Problem Set. First question is in relation to the article the Population Problem: Theory and Evidence by Partha Dasgupta.

  • Q : Market power of profit maximizing firm

    Profit-maximizing firms which have market power: (w) are mostly always subject to government price ceilings. (x) decide how much to produce and what price to charge after estimating both their production costs and market demand, altho

  • Q : Structure-conduct-performance From

    From roughly 1890 till 1970 year, the “structure-conduct-performance paradigm” controlled theories regarding how firms behave in various types of markets. The term “structure” in this expression refers to such

  • Q : Greater economics loss than fixed costs

    Within the short run, there a monopolistically competitive firm will NOT operate at: (w) an economic loss that is less than fixed costs. (x) an economic loss that is greater than fixed costs. (y) making a normal profit. (z) making economic profits.

  • Q : Decrease in demand determinants The

    The reduction in demand accompanies all of the following apart from: (i) Expectations of better accessibility or excesses. (ii) Declines in the price of substitute. (iii) Rises in the number of buyers. (iv) Negative modifications in preferences and ta

  • Q : Long-run equilibrium price paid Pure

    Pure competitors in a long-run equilibrium are paid a price which: (i) allows recovery of any previous operating losses. (ii) equals MC although exceeds average cost. (iii) maximizes average revenue minus average cost. (iv) equals maximum long run ave

  • Q : Present Value of Annual Interest Rate

    When the annual interest rate is 11 percent and a small office building can be expected to lease perpetually for price of $33,000 annually, the building and also the land it sits onto have a present value of approximately: (1) $363,00