If the federal government taxes the interest rate that savers receive,
A) the rate of return to savers increases because of transfer payments,and people save more.
B) the demand for loanable funds increases.
C) the supply of loanable funds increases.
D) the supply of loanable funds decreases.
E) corporations are more willing to borrow.
Correct Answer:
Verified
Q43: If interest rates rise,
A) firms are willing
Q44: The real interest rate in 2012 was
A)
Q45: The interest rate represents
A) the opportunity cost
Q46: The real interest rate
A) equals the nominal
Q47: You are thinking about building a new
Q49: The gap between the real and nominal
Q50: You borrow $10,000 today at a nominal
Q51: If interest rates rise but the quantity
Q52: If interest rates rise,
A) foreign entities that
Q53: Assume inflation is occurring in a nation;
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