If the demand for loanable funds shifts to the right, then the equilibrium interest rate()
A. and quantity of loanable funds rise.
B. and quantity of loanable funds fall.
C. rises and the quantity of loanable funds falls.
D. falls and the quantity of loanable funds rises.
查看答案
If the supply for loanable funds shifts to the left, then the equilibrium interest rate()
A. and quantity of loanable funds rise.
B. and quantity of loanable funds fall.
C. rises and the quantity of loanable funds falls.
D. falls and the quantity of loanable funds rises.
If the nominal interest rate is 5 percent and the rate of inflation is 2 percent, then the real interest rate is()
A. 7 percent.
B. 3 percent.
C. 2.5 percent.
D. 4 percent.
Crowding out occurs when investment declines because ()
A. a budget deficit makes interest rates rise.
B. a budget deficit makes interest rates fall.
C. a budget surplus makes interest rates rise.
D. a budget surplus makes interest rates fall.
If the interest rate is 7.5 percent, what is the present value of $4,000 to be received in 6 years()
A. $2,420.68
B. $2,591.85
C. $2,996.33
D. $3,040.63