If the proportion of bad borrowers increases,
A) the lending interest rate increases.
B) the lending interest rate decreases.
C) the borrowing interest rate increases.
D) the borrowing interest rate decreases.
C
Economics
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Economics
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a $10 billion increase in investment spending will cause the equilibrium output to rise by:
a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.
Economics