Using the supply and demand model, what would happen if foreign investors no longer want to loan money to the United States?
a. Interest rates will decrease, and investment will decrease.
b. Interest rates will increase, and investment will increase.
c. Interest rates will increase, and investment will decrease.
d. Interest rates will decrease, and investment will increase.
c. Interest rates will increase, and investment will decrease.
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In the national income accounts, government expenditure on goods and services exclude
A) transfer payments. B) state and local government purchases. C) local government purchases but include state government purchases. D) spending on national defense.
Consumer surplus is the
A) value of a good expressed in dollars. B) price of a good expressed in dollars. C) value of a good minus the price paid for it summed over the quantity bought. D) value of a good plus the price paid for it summed over the quantity bought.