Suppose favorable weather conditions temporarily raise the marginal productivity of existing capital.Weather conditions are expected to return to normal next year,so there is no change in the expected marginal productivity of future capital.In this situation,the interest rate will
A) rise.
B) fall.
C) remain unchanged.
D) react unpredictably.
Correct Answer:
Verified
Q63: Consider the following: Q64: Which of the following results in the Q65: Consider the following: Q66: Beginning in 2013,a local government in Georgia Q67: When making a purchase,it is least costly Q69: You have a bond that will pay Q70: A local government can spend $800 today Q71: At Olive's Oranges customers may pick oranges Q72: You have won a lottery prize that Q73: A risk premium is additional interest,in excess
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