Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) an increase in the default risk.
B) households expecting higher future income.
C) firms expecting lower future profits.
D) firms expecting higher future profits.
Correct Answer:
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Q96: Q111: Q112: All of the following are sources of Q113: Q114: Q117: Q118: The nominal interest rate minus the real Q119: If households expect an increase in their Q120: According to the Ricardo- Barro effect, Q121: 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![]()
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A)taxpayers fail![]()