As the real interest rate increases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. increases; decreases
B. does not change; does not change
C. increases; increases
D. decreases; increases
Answer: A
Economics
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A) cost overrun. B) excessive competition. C) negative externality. D) government subsidy.
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If the money supply increased by 4 percent and velocity increased by 4 percent: a. nominal GDP would not change
b. nominal GDP would increase by 1 percent. c. nominal GDP would increase by 4 percent. d. nominal GDP would increase by 8 percent.
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