In the Keynesian model, if interest rates rise above what people consider normal, households will respond by
A) increasing the saving rate.
B) reducing the saving rate.
C) holding more money.
D) holding more bonds.
D
Economics
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Refer to the scenario above. The present value of the positive cash flows from the investment in Plan 2 is equal to:
A) $9,209. B) $6,263. C) $15,670. D) $7,537.
Economics
________ in the expected future domestic exchange rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Economics