Which of the following would be true if the market interest rate increases?
A) The cost of borrowing would increase, and this would decrease saving.
B) The opportunity cost of consuming a good in the future would increase, and this would increase saving.
C) The opportunity cost of consuming a good in the future would increase, and saving would decrease.
D) The reward for saving would decrease, and present consumption would increase.
E) The reward for saving would increase, and this would increase saving.
Correct Answer:
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Q23: Exhibit 13.2 Q24: If a firm can borrow or lend Q25: If the expected rate of return from Q27: Interest is a payment for deferred _ Q29: Exhibit 13.1 Q30: If the annual interest rate is 4 Q31: A firm's demand curve for investment is Q32: Which of the following is true of Q33: Exhibit 13.2 Q116: Intellectual property is Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)taxation.
B)saving.
C)consumption.
D)investment.
E)annuity.
A)a special form of capital
B)a
