A decrease in the real interest rate leads to

A) an increase in investment demand so that the demand for loanable funds curve shifts rightward.
B) a fall in the capital stock.
C) an increase in the expected profit.
D) a movement downward along the demand for loanable funds curve.

D

Economics

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Suppose the CPI for this year is 133.7. This number means that

A) on average, goods cost $133.70 each this year. B) prices rose 33.7 percent over the last year. C) prices rose 133.7 percent over the base year. D) prices rose 33.7 percent over the base year. E) prices rose 133.7 percent over the last year.

Economics

Assume that Janet is risk-averse. Which of the following bets is she more likely to accept, depending on the degree of risk aversion?

A. win $20 one-fourth of the times, win $10 one-fourth of the times, and lose $20 one-fourth of the times B. win $20 one-fourth of the times, win $10 one-half of the times, and lose $20 one-fourth of the times C. win $40 one-fourth of the times, break even one-half of the times, and lose $40 one-fourth of the times D. win $40 one-fourth of the times, win $10 one-half of the times, and lose $40 one-fourth of the times

Economics