A decline in the interest rate will lead to an increase in the price of capital, supply of capital remaining constant

a. True
b. False
Indicate whether the statement is true or false

True

Economics

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Suppose the Fed conducts an open market purchase. We can expect this transaction to

A) reduce the money supply, increase bond prices, and lower interest rates. B) increase the money supply, lower bond prices, and lower interest rates. C) increase the money supply, raise bond prices, and lower interest rates. D) reduce the money supply, reduce bond prices, and increase interest rates.

Economics

China's one child policy

a. Caused the share of young people to rise b. Prematurely aged the Chinese labor force c. Lowered the saving rate d. all of the above e. none of the above

Economics