Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?
A) a reduced demand for housing due to slowing population growth
B) the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners
C) a smaller capital requirement for modern information technology firms
D) the falling price of capital relative to other goods
B
You might also like to view...
Regulatory forbearance
A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s. B) had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls," as insolvent institutions lost deposits to health institutions. C) had the advantage of permitting many insolvent S&Ls the opportunity to return to profitability, saving the FSLIC billions of dollars. D) increased adverse selection dramatically.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro depreciated by 25% and the dollar appreciated by 25%. b. The euro appreciated by 25% and the dollar depreciated by 20%. c. The euro depreciated by 25% and the dollar appreciated by 20%. d. The euro appreciated by 20% and the dollar depreciated by 25%. e. The euro depreciated by 20% and the dollar appreciated by 25%.