An increase in the interest rate will:
a. increase the amount of money borrowed by firms
b. decrease the amount of money borrowed by firms.
c. have an ambiguous effect on the amount of money borrowed by firms.
d. have no effect on the amount of money borrowed by firms.
b
Economics
You might also like to view...
The new classical model has as its central idea that
A) workers and firms have rational expectations. B) wage and price stickiness explain fluctuations in real GDP. C) shifts in aggregate demand have no impact on real GDP. D) the Federal Reserve should adopt a monetary growth rule.
Economics
The largest source of tax receipts for the government is
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Economics