The greater the interest rate
A. the greater the opportunity cost of another dollar of current consumption.
B. the greater the present value of a sum to be received a year in the future.
C. the lower the discount rate.
D. the less a dollar invested today will be worth a year from now.
Answer: A
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Assuming all else equal, if the real interest rate decreases, it will lead to:
A) a decrease in the quantity of credit demanded by a firm. B) the credit demand curve of a firm to shift to the right. C) an increase in the quantity of credit demanded by a firm. D) the credit demand curve of a firm shifts to the left.
The time required _____ is not a time lag associated with using discretionary policy to correct an economic problem
a. to recognize the problem b. to decide how to handle the problem c. to set a policy change in action d. for a policy to affect economic variables e. to observe public reaction after a policy announcement is made