Other things the same, an increase in the U.S. interest rate causes the quantity of loanable funds supplied to

a. rise because national saving rises.
b. rise because domestic investment rises.
c. fall because national saving falls.
d. fall because domestic investment falls.

a

Economics

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Which of the following may NOT serve as a possible chain reaction for either fiscal or monetary policy?

A) G? ? Y? ? C? ? Y? ? C?.... B) T? ? Y? ? C? ? Y? ? C?.... C) M? ? i? ? I? ? Y? ? C?.... D) M? ? i? ? I? ? Y? ? C?.... E) M? ? i? ? I? ? Y? ? C?....

Economics

As the wage rate increases, the income effect tends to reduce the quantity of labor supplied to the market

a. True b. False

Economics