Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) firms expecting higher future profits.
B) firms expecting lower future profits.
C) households expecting higher future income.
D) in increase in the default risk.
A
Economics
You might also like to view...
Assuming all else equal, if households are optimistic about their future income, it is likely to cause a(n):
A) downward movement along their credit demand curve. B) upward movement along their credit demand curve. C) leftward shift of their credit demand curve. D) rightward shift of their credit demand curve.
Economics
According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.
Economics