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When interest rates rise, in that case the present value of future payments will: (w) fall. (x) rise. (y) remain the same. (z) depend onto the transactions demand for money. How can I solve my Econom
When fear that giant firms will default onto their debts drives down the prices of corporate bonds, in that case: (w) established corporations will rely more heavily onto sales of stock to secure fund
When the interest rate increases, in that case the price of a long-term bond: (w) rises faster than a perpetuity bond. (x) falls. (y) does not change. (z) appreciates relatively less than a short term
Equilibrium interest rates change among various financial instruments due to differences in all of the given EXCEPT: (w) default risk. (x) time to maturity. (y) liquidity. (z) the solvency of the lend
Interest rates on specified financial instruments tend to be lower the: (1) shorter the period to maturity. (2) greater the risk of default. (3) less liquid is the asset. (4) greater the expected rate
When, relative to most another forms of business, farm incomes are tiny in comparison to farmers’ net wealth, in that case: (w) rates of return in agriculture are below those from other investme
An increase within investor optimism will cause: (w) interest rates to rise. (x) slower technology advances. (y) slumps in business construction. (z) interest rates to fall. Please choose the right a
The supply of loanable funds varies positively along with the: (w) willingness of people to defer consumption into the future. (x) profitability and productivity of new capital investments. (y) price
Interest stated at an annual percentage rate that stands for APR is the rate of interest without consideration of compounding throughout that year. Yearly or annual percentage yield [APY] refers to in
The interest rates business investors into economic capital should pay on a loan: (w) reflect the opportunity costs to society of funding one investment in place of another. (x) are relatively trivial
The income stream per period like a percentage of the dollar outlay for investment into a capital good is the: (1) present value of the investment good. (2) rate of economic profit. (3) interest rate.
When the present value of the expected future income by additional investment exceeds the current cost of additional investment, in that case investment will: (w) rise. (x) fall. (y) not change. (z) T
When people become optimistic about living longer and accordingly save more for their retirement years, in that case the decline into interest rates will tend to: (w) raise capital costs for business
Interest rates tend to be negatively associated to: (w) household preferences for more liquid assets. (x) typical rates of return on alternative investments. (y) household willingness to delay consump
Lowered interest rates since households have determined to save more tend to: (1) give incentives for financial investors to switch by stock to bonds. (2) reduce the optimal level of economic investme
Assume that this market is initially within equilibrium along with a supply of funds consequent to S0 and a demand for loanable funds consequent to I1. When the U.S. Department of the Treasury began s
When this market is primarily in equilibrium at point c, any drop within interest rates caused through an increase in people’s willingness to save will cause as: (1) the rate of return schedule
This capital market is within a closed private economy. Primary plans of savers and investors are demonstrated as curves S0 and I0. There Market equilibrium will exist at: (1) point a. (2) point b. (3
The real market rate of interest will increase when there is an increase into: (w) pessimism on the parts of investors. (x) willingness to hold illiquid assets. (y) total capital stock relative to nat
When households shift by an emphasis on cash into their portfolios and more stocks and bonds since they have become more willing to hold less liquid assets, in that case the: (w) interest rate rises.
A higher interest rate is probably to be a consequence of: (1) lower expected profitability to investors. (2) new tax breaks onto interest income. (3) weakening preferences for current income over fut
When the preference for current consumption over future consumption strengthens, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income rises. (z) inter
When households become ever more willing to sacrifice future consumption therefore that they can enjoy greater levels of recent consumption, in that case the: (w) interest rate rises. (x) interest rat
Financial intermediation is, largely, the process of: (1) lending money out at interest. (2) spending funds faster than revenues are obtained. (3) channeling funds from savers to dissavers, as well as
A financial system's main economic reason is to: (w) channel savings to more efficient and productive uses. (x) print money to assist the government. (y) increase the money multiplier. (z) protect ind