If interest rates rise,
A) firms are willing to borrow more money because their rates of return have increased.
B) households are willing to borrow more money because their rates of return have increased.
C) firms are willing to borrow less money because their costs of borrowing has increased.
D) foreign entities are willing to borrow more money because their rates of return have increased.
E) it must mean that inflation has decreased because nominal rates have increased.
Correct Answer:
Verified
Q38: The interest rate is
A) a cost to
Q39: Assume you put money into an asset
Q40: The interest rate represents _ to _
Q41: The largest inflationary gap appeared
A) in the
Q42: If a depositor puts money in the
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
Q48: If the federal government taxes the interest
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