Multiple Choice
A higher real interest rate will
A) increase the profitability of new investment.
B) decrease lending of funds from firms to other economic agents.
C) reduce the desired investment of all firms.
D) reduce the desired investment of only those firms that have to borrow.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q1: Any change in the economy that raises
Q2: The nominal interest rate is 10%,the expected
Q3: A firm has current and future marginal
Q4: You are trying to figure out how
Q5: The user cost of capital is given
Q7: If the aggregate consumption function is C
Q8: A temporary increase in government purchases of
Q9: An economy has government purchases of 2000.Desired
Q10: An economy has government purchases of 1000.Desired
Q11: An invention that raises the future marginal