Answer the following questions true (T) or false (F)
1. An increase in the real interest rate will decrease consumption and investment.
2. Retained earnings are always sufficient to finance a firm's rapid expansion in a high-growth economy.
3. Financial markets and financial intermediaries comprise the financial system.
1. TRUE
2. FALSE
3. TRUE
You might also like to view...
Microeconomics is the study of
A) the behavior of the economy as a whole. B) a nation from the perspective of the whole world. C) how individuals and firms make decisions. D) the effect that money has in the economic system.
As a nation's average education level increases, the nation's level of productivity
A. Decreases, and the nation moves to a new point on the same production possibilities curve. B. Increases, and the production possibilities curve shifts to the right. C. Increases, and the nation moves to a new point on the same production possibilities curve. D. Decreases, and the nation's production possibilities curve shifts to the left.