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A decrease in saving that leads to an increase in the interest rate will:?

Corporate Law Discussions

A decrease in saving that leads to an increase in the interest rate will:?

Postby hanan » Tue Mar 13, 2012 7:05 pm

4. A decrease in saving that leads to an increase in the interest rate will:
a. Decrease the amount of investment spending
b. Only result in a surplus of loanable funds
c. Shift the demand for loanable funds to the right, increasing net investment
d. Shift the demand for loanable funds to the left, causing a decrease in investment

14. Government monetary authorities manipulate the supply of money in the economy primarily to:
a. Ensure high profits for commercial banks
b. Provide sufficient currency to individuals and businesses to conduct their daily business c. Keep the dollar strong measured against the currencies of foreign nations
d. Influence the interest rate and the levels of investment, output, and prices in the economy

17. If you pay $2,640 annually on a $22,000 loan A and pay $1,800 on a $12,000 loan B, then the interest rate is:
a. 12 percent on loan A and 18 percent on loan B
b. 10 percent on loan A and 15 percent on loan B
c. 12 percent on loan A and 15 percent on loan B
d. 15 percent on loan A and 12 percent on loan B

19. Profit-maximizing businesses will buy more new machinery only if:
a. The interest rate increases
b. Labor costs are low and expected to fall
c. The expected rate of return is greater than the interest rate
d. The present value of the new machinery is lower than its purchase price

20.Rent differentials for various parcels of land may exist due to each of the following factors except:
a. Productivity differences among the different parcels of land
b. Differences in the feasible alternative uses of the different parcels of land
c. Different locations of the parcels of land
d. The inelastic total supply of land from society's perspective

21. Since 1900, the relative share of income paid to American resource suppliers as corporate profits, interest, and rent has been about:
a. 10 percent
b. 20 percent
c. 50 percent
d. 80 percent

22. The minimum rate of return or payment necessary to keep an entrepreneur in some specific line of production is referred to as:
a. The pure rate of interest
b. The real interest rate
c. Economic profit
d. Normal profit


23. The prices paid to a productive resource usually perform an incentive function except with what resource?
a. Land
b. Labor
c. Capital
d. Entrepreneurial ability

25. Which factor will decrease the demand for loanable funds?
a. A change in the tax law to exempt savings from taxation
b. Expansion of social insurance to cover more fully the cost of retirement
c. A general business recession that produces high rates of unemployment
d. A technological advance that increases returns on investments
hanan
 
Posts: 13
Joined: Sat Apr 02, 2011 1:39 am

A decrease in saving that leads to an increase in the interest rate will:?

Postby tai38 » Tue Mar 13, 2012 7:06 pm

lead to any thing
tai38
 
Posts: 18
Joined: Thu Mar 31, 2011 6:37 pm

A decrease in saving that leads to an increase in the interest rate will:?

Postby nicolas » Tue Mar 13, 2012 7:06 pm

lead to any thing
nicolas
 
Posts: 21
Joined: Sat Apr 02, 2011 12:29 am


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