Multiple Choice
At the beginning of 2017, Joey planned to buy a new iPhone, LCD TV, and motorcycle by borrowing money. Joey already owes $25,000 on other loans. He also planned to buy new clothing and DVDs out of current income. An increase in interest rates, during 2017, will most likely
A) cause Joey to decide to borrow less money, but not change what he planned to spend on goods purchased with current income.
B) cause Joey to decide to borrow more money and to spend more on goods purchased with current income.
C) cause Joey to decide to borrow more money, but not change what he planned to spend on goods purchased with current income.
D) cause Joey to decide to borrow less money and to spend less on goods purchased with current income.
Correct Answer:
Verified
Correct Answer:
Verified
Q180: The government spending multiplier is likely to
Q181: The idea of the life-cycle theory of
Q182: Refer to the information provided in Figure
Q183: The government spending multiplier is likely to
Q184: Adjustment costs are the costs that a
Q186: Firms have no inventories that they can
Q187: As the economy _, the labor force
Q188: The tendency for _ to decrease when
Q189: If Okun's Law holds true, then a
Q190: An unexpected increase in nonlabor income will