the discovery of new and better roundabout methods of production.
a lower rate of time preference in society.
a lower interest rate.
a higher interest rate.
a and c
1 points
QUESTION 12
Which of the following statements is true?
All persons have a high rate of time preference.
People with a high rate of time preference are more likely to be borrowers than people with a low rate of time preference.
People with a high rate of time preference are more likely to be lenders than people with a low rate of time preference.
A high interest rate is the cause of a high rate of time preference.
none of the above
1 points
QUESTION 13
Which of the following statements is true?
The nominal interest rate is always higher than the real interest rate since the nominal interest rate equals the real interest rate plus the expected inflation rate.
The nominal interest rate is always lower than the real interest rate since the nominal interest rate equals the real interest rate minus the expected inflation rate.
The nominal interest rate can equal the real interest rate, but to do so the expected inflation rate must be zero percent.
It is the nominal interest rate-not the real interest rate-that matters to borrowers.
1 points
QUESTION 14
If there is an increase in the expected inflation rate, then,
the supply and demand for loanable funds will decrease.
the supply and demand for loanable funds will increase.
the supply of loanable funds will decrease, and the demand for loanable funds will increase.
the supply of loanable funds will increase, and the demand for loanable funds will decrease.
1 points
QUESTION 15
If suddenly a 4 percent inflation rate (instead of a zero percent inflation rate) is expected by both suppliers and demanders in the loanable funds market, then
the demand for loanable funds curve will shift rightward, and the supply of loanable funds curve will shift leftward.
the demand for loanable funds curve will shift leftward, and the supply of loanable funds curve will shift rightward.
both the demand for loanable funds curve and the supply of loanable funds curve will shift leftward.
both the demand for loanable funds curve and the supply of loanable funds curve will shift rightward.
