If the market interest rate increases, then
A) the cost of borrowing increases and so saving falls
B) the opportunity cost of consuming a good in the future increases and saving, therefore, increases
C) the opportunity cost of consuming a good in the future increases and saving, therefore, falls
D) the reward for saving diminishes and so present consumption increases
E) the reward for saving increases and so saving increases
Correct Answer:
Verified
Q18: Another term for an investment good is
A)interest
B)savings
C)capital
D)rent
E)production
Q19: If an economy increases the amount of
Q20: The rate of time preference is positive
A)only
Q21: A profit-maximizing firm invests up to the
Q22: In order to predict the marginal rate
Q24: If the interest rate increases from 6
Q25: The old adage that "a bird in
Q26: If people have a positive rate of
Q27: The reward offered to households to refrain
Q28: The marginal rate of return on investment
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