The derived demand curve for loans slopes downward because as interest rates
a. fall, future income becomes less valuable.
b. fall, investors develop pessimistic expectations.
c. fall, future income becomes more valuable.
d. rise, investors become pessimistic.
c
Economics
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Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the money supply could ultimately
A) rise by $3 million. B) rise by $10 million. C) rise by $30 million. D) rise by $90 million.
Economics
Explain the reasons firms might follow the Baumol model of maximizing revenue subject to achieving a minimum level of profits
What will be an ideal response?
Economics