Identify the correct statement
a. It is absolutely compulsory for the government to earn a profitable return on the money it earns by selling bonds.
b. When government borrowing rises, interest rates decline, thereby driving up private investment.
c. When interest rates rise, fewer number of corporations offer new bonds to raise investment funds.
d. An increase in interest rate reduces the cost of borrowing by the firms.
e. When interest rates fall, the firm's cost of raising funds through bonds increases.
c
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Any point representing a cost and output combination that is below the long-run average cost curve:
a) may represent actual cost and production levels in the short run. b) represents unattainable cost levels. c) is attainable only when all factors are variable. d) is attainable if the firm minimizes its costs according to the "principle of substitution". e) represents less efficient cost levels than points on the long-run average cost curve.
How would the economy of Canada be likely to be characterized?
a) free market b) centrally planned c) mixed, but on the side of centrally planned d) mixed, but on the side of free marker