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Increases in market interest rates are probably to be related with: (w) people’s increasing willingness to save. (x) bursting a speculative bubble into prices for hi-tech stocks. (y) increased p
Market interest rates are LEAST affected through: (w) people’s willingness to defer consumption when they are rewarded for doing so. (x) people’s desires for liquidity. (y) the marginal pr
Into the long run, interest rates depend LEAST upon the: (1) premiums needed to induce savers to delay consumption. (2) premiums necessary to induce wealth holders to sacrifice liquidity. (3) producti
Not in between the total demands for loanable funds would be the demands of: (1) consumers for financial capital. (2) business firms for financial capital. (3) government for loanable funds to cover b
The clearest signals of the opportunity costs to society of funding one investment in place of another are relative: (w) interest rates, expected rates of return, and also expected economic profit. (x
Interest rates will rise when: (1) the supply of loanable funds grows. (2) the average maturities of corporate bonds issued decreases. (3) most households decide to decrease the liquidity of their por
If considering the market for loanable funds, and the classical view of how interest is associated to people’s decisions to save is which: (w) interest income is the prime example of an unearned
A higher interest rate shows a: (w) stronger preference for current income over future income. (x) weaker preference for current income over future income. (y) stronger preference for future income ov
When households become more willing to hold less liquid assets, the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash. How can I
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) equa
Saving is positively related to and investment is negatively related to: (1) marginal benefits and marginal costs. (2) real interest rates. (3) returns onto alternatives. (4) expectations. (5) g
When households become increasingly willing to defer current consumption in order that they can enjoy greater future consumption, in that case the: (1) interest rate rises. (2) equilibrium investment
When the preference for current consumption over future consumption weakens, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income falls. (z) equilibri
Any drop in interest rates caused through people’s increased willingness to save, which will cause: (w) the rate of return schedule reflected in I0 to shift to the right. (x) the rate of return
The first plans of savers and investors within this closed private economy are demonstrated as S0 and I0. Assume that people begin spending less on current consumption, and total saving plans shift to
This capital market is within this illustrated figure a closed private economy. The first plans of savers and investors are demonstrated as curves S0 and I0. There market equilibrium will exist at: (1
Higher interest rates give incentives for: (w) a corporation to build a new plant. (x) a family to save more. (y) a family to buy a new house. (z) automakers to produce more new cars. Please choose t
The individuals who eventually enable accumulation of capital into a market economy are: (1) consumers. (2) firms. (3) government. (4) savers. (5) capitalists. How can I solve my Economics problem? P
Financial intermediaries are not: (1) channels linking parties who want to save to parties who want to invest. (2) restricted to serving primarily large savers and investors. (3) more significant in d
If Bank of America helps link an inventor in require of additional funds to develop a ground breaking invention along with a retired school teacher along with excess savings, in that case they are per
Financial markets are markets in that funds are transferred from: (w) financial investors or institutions which have an excess of available funds to people or firms which have a shortage. (x) people w
The prices and costs of investment goods do not be likely to: (1) rise during periods of prosperity. (2) rise as demand for these goods increases. (3) fall throughout economic slumps. (4) fall as dema
When the hourly wage rate (w) of $15 and the hourly price of capital (r) of $75, the average cost of producing any specified level of output into the long run will be minimized where: (1) MPPL = MPPK.
Labor productivity tends to rise while: (1) the K/L ratio increases. (2) the K/L ratio decreases. (3) workers forego education. (4) capital becomes more expensive. (5) wage levels fall. Please choose
An illustration of economic capital would be: (1) loanable funds in banks. (2) factory buildings. (3) gold held through price speculators. (4) labor’s productive skills. (5) corporate stocks. H