Multiple Choice
A change in household tastes and preferences reduces the rate of saving. The market interest rate _____, and the quantity of capital _____.
A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q82: (Table: Taxi Fleet) Metro Cab is considering
Q83: Suppose that a firm generates $40,000 of
Q84: Qing and her coworkers like to bet
Q85: (Table Cash Flows I) At a 7%
Q86: (Table: Health Status) Suppose the person's utility
Q88: A firm is considering an investment project
Q89: Lin has wealth of $100,000 and faces
Q90: The demand for capital is Q<sup>D</sup> =
Q91: The market for capital is in equilibrium
Q92: Jiayi would like to save for a