When the expected real rate of interest declines, ceteris paribus, we expect:
a. more investment projects will be undertaken.
b. lenders will need to lower their average default rate to maintain their profit margins.
c. firms will borrow less and cut back on their investment projects.
d. individuals will steer clear of equity markets.
Ans: a. more investment projects will be undertaken.
Economics
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A) encouraging, raises B) encouraging, lowers C) discouraging, raises D) discouraging, lowers
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Explain the two categories of balance of payments transactions.
What will be an ideal response?
Economics