Everything else remaining unchanged, what is likely to happen to the credit demand curve of a software producing firm if:
a. there is an increase in the real interest rate?
b. they plan to expand production in near future?
a. If there is an increase in the real interest rate, there will be an upward movement along the credit demand curve of the software manufacturer.
b. If they plan to expand production in near future, the credit demand curve of the software firm is likely to shift to the right.
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The difference between inventories and inventory investment is that typically ________
A) the first one is a stock of unfinished or unsold goods; the second one is a flow that indicates productive activity B) the first one denotes the change in holdings of capital; the second one includes most final goods C) the first one is measured at the beginning of the year; the second one is measured at the end of the year D) all of the above E) none of the above
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of an increase in the price of a substitute for a good?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4