Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
A. It increases.
B. It decreases.
C. It does not change.
D. It depends entirely on the interest rate.
Answer: A
Economics
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A) produce the Cournot duopolist level of output. B) produce the Stackelberg leader level of output. C) set price equal to marginal cost. D) shut down.
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Both tariffs and quotas will restrict supplies coming into the country from abroad.
Answer the following statement true (T) or false (F)
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