Homework Answers
Answer : option (A)
When the interest rates decreases the cost of current relative to future consumption decreases.
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Question 1 (1 point) As interest rates decrease, the: O Cost of current relative to future...
5 In the intertemporal model, the real interest rate increases, the following statement is wrong ()...
5 In the intertemporal model, the real interest rate increases, the following statement is wrong () A budget constraint line is steeper B Consumer endowment points change C. The present value of the consumer ’s lifetime wealth decreases D consumers will increase current consumption 6 In the intertemporal model, the effect of increasing real interest rates on lenders is () A Current consumption increases, future consumption increases B. Current consumption decreases, future consumption increases C Current consumption is uncertain, and...
1. A decrease in interest rates will ___ the cost of acquiring funds for investment projects,...
1. A decrease in interest rates will ___ the cost of acquiring funds for investment projects, other things equal. -Increase -Have an indeterminate effect on -Not change -Decrease 2. The IS curve -Shows combinations of interest rates and output levels where the goods market is in equilibrium -Is upward sloping because higher interest rates increase aggregate demand -Was created by the CIA in the 1960s as anti-Soviet propaganda -Shifts if the money supply changes 3. If firms invent new technologies,...
c=261, c'=263, and consumption increases over time Question 13 (1 point) A permanent decrease in taxes...
c=261, c'=263, and consumption increases over time Question 13 (1 point) A permanent decrease in taxes leads to ) a small decrease in current consumption. | a small increase in current consumption. a large increase in current consumption. ) a large decrease in future consumption. no changes to consumption.
What is the correct answer on this question? When interest rates decline, the price of a...
What is the correct answer on this question? When interest rates decline, the price of a 30-year bond: A Increases B Decreases C Remains the same D Increases first, then decreases E Decreases first, then increases
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment...
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment will decrease. Planned investment will not be affected. Planned investment could increase or decrease. Planned investment will increase. Question 2 (1 point) ere to cut back on their consumption expenditures If the economy were to enter a recession and households w what type of industry would be most affected? Industries selling perishable goods. Industries providing services. Industries selling durable goods. Industries selling non-durable goods...
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases. b. Interest rates decrease, the price level decreases. c. Interest rates increase, the price le
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases.b. Interest rates decrease, the price level decreases.c. Interest rates increase, the price level increases.d. Interest rates increase, the price level decreases.
A decrease in domestic interest rates relative to interest rates in other countries may lead to, from the home c...
A decrease in domestic interest rates relative to interest rates in other countries may lead to, from the home currency and home country's perspectives, an exchange rate: depreciation and an increase in net exports O depreciation and a decrease in net exports. O appreciation and an increase in net exports. appreciation and a decrease in net exports. The Reserve Bank of Australia can increase the cash rate by: O borrowing from the banks using reverse repurchase agreements. O purchasing bonds...
hi can you plzz answer all the true and false question in detail 9. A decrease in a wage taxes causes the opportu...
hi can you plzz answer all the true and false question in
detail
9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a....
When the interest rate decreases, O A. the cost of borrowing decreases and the consumption function...
When the interest rate decreases, O A. the cost of borrowing decreases and the consumption function shifts up. OB. only the dollar amount of credit card purchases decreases O c. the cost of borrowing decreases and the consumption function shifts down O D. the consumption function shifts down since individuals face smaller debt.
I am not understanding this question, please explain. thank you! 84%E) 8:39 PM Wed Oct 30...
I am not understanding this question, please explain. thank
you!
84%E) 8:39 PM Wed Oct 30 5) Assume interest rates equal 10% and there is a decrease in current income of $1000, and an increase in future income of $1100, it will lead to A) an increase in current consumption, a decrease in future consumption, and an increase in saving B) a decrease in current consumption, an increase in future consumption, and a decrease in saving. C) no change in...
c=261, c'=263, and consumption increases over time Question 13 (1 point) A permanent decrease in taxes leads to ) a small decrease in current consumption. | a small increase in current consumption. a large increase in current consumption. ) a large decrease in future consumption. no changes to consumption.
Question 1 (1 point) If interest rates increase, how wil his affet planned investment? Planned investment will decrease. Planned investment will not be affected. Planned investment could increase or decrease. Planned investment will increase. Question 2 (1 point) ere to cut back on their consumption expenditures If the economy were to enter a recession and households w what type of industry would be most affected? Industries selling perishable goods. Industries providing services. Industries selling durable goods. Industries selling non-durable goods...
A decrease in domestic interest rates relative to interest rates in other countries may lead to, from the home currency and home country's perspectives, an exchange rate: depreciation and an increase in net exports O depreciation and a decrease in net exports. O appreciation and an increase in net exports. appreciation and a decrease in net exports. The Reserve Bank of Australia can increase the cash rate by: O borrowing from the banks using reverse repurchase agreements. O purchasing bonds...
hi can you plzz answer all the true and false question in
detail
9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a....
When the interest rate decreases, O A. the cost of borrowing decreases and the consumption function shifts up. OB. only the dollar amount of credit card purchases decreases O c. the cost of borrowing decreases and the consumption function shifts down O D. the consumption function shifts down since individuals face smaller debt.
I am not understanding this question, please explain. thank
you!
84%E) 8:39 PM Wed Oct 30 5) Assume interest rates equal 10% and there is a decrease in current income of $1000, and an increase in future income of $1100, it will lead to A) an increase in current consumption, a decrease in future consumption, and an increase in saving B) a decrease in current consumption, an increase in future consumption, and a decrease in saving. C) no change in...
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