Multiple Choice
During the expansion phase of the business cycle,business firms become optimistic about their future earning capacity as do banks.Nominal interest rates rise during expansions.Investment lending could be expected to
A) rise if the change in future earnings is thought to be greater than the change in interest rates.
B) stay the same.
C) fall.
D) fall if the change in future earnings is thought to be greater than the change in interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q64: Figure 4-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-8
Q65: Among all assets,only money can be a<br>A)unit
Q66: Monetary restraint and fiscal stimulus will<br>A)both lower
Q67: An increase in the money supply will
Q68: An increase in the real money supply
Q70: Figure 4-10<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-10
Q71: Figure 4-9<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-9
Q72: If the IS curve is negatively sloped
Q73: Figure 4-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2645/.jpg" alt="Figure 4-6
Q74: Which variable is assumed to remain exogenous