An increase in the real interest rate will
A) increase investment demand.
B) decrease the cost of funds for investment.
C) cause businesses to divert funds from investment to the purchase of financial assets.
D) reduce the federal budget deficit.
Correct Answer:
Verified
Q10: A general equilibrium is an outcome in
Q11: In the saving-investment diagram, an increase in
Q12: In macroeconomic models, Y stands for
A)only aggregate
Q13: In a closed economy, the goods market
Q14: Evidence suggests that when government purchases rise
A)national
Q16: An increase in the expected profitability of
Q17: In a closed economy, if the goods
Q18: Why did the Fed cut interest rates
Q19: An increase in the expected real interest
Q20: The money market includes trade in
A)only currency.
B)only
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