Effects of higher real interest rates

Higher real interest rates give in: (w) greater incentives to save and decreased incentives to invest. (x) increases in the amount of liquidity desired by financial investors. (y) increases in the optimal debt-equity ratio of a corporation. (z) decreases in any surpluses into a country’s capital account, or raises in any deficits into the country’s current account.

Hey friends please give your opinion for the problem of Economics that is given above.

View Complete Question

Related Questions in Microeconomics

Q : Absolute and relative price is the

is the price in the law of demand an absolute price or a relative price

Q : Relationship between MPC and MPS

Determine relationship between MPC and MPS? Answer: MPC + MPS = 1

Q : Negative externalities Give the answer

Give the answer of following question. Negative externalities arise: A) when firms pay more than the opportunity cost of resources. B) when the demand curve for a product is located too far to the left. C) when firms "use" resources without being compelled to pay for

Q : Purchasing power of Income Effects

Whenever the price increases for a good that you enjoy extremely and purchase regularly: (i) The purchasing power of your income is reduced. (2) You adjust more rapidly than when the good was insignificant to you. (3) Your substitution effect is over-powered by an inc

Q : Rate of return by perpetuity price A

A perpetuity currently priced at $5000 which will pay $200 annually all times generates a rate of return of: (w) 4%. (x) 4.8%. (y) 5%. (z) 3.5%. Hey friends please give your opinion for the problem

Q : Problem on utilitarian philosophy Can

Can someone help me in finding out the right answer from the given options. The utilitarian philosophy didn’t depend on the supposition that: (i) The greatest good for greatest number is the finest social goal. (ii) Individual utilities can be summed up to measu

Q : Short run operation and long run

When Presidio, Hybrid Roses and Texas boomed learned which its rent and utilities had soared upward by $9 per hour hence a new five-year lease would now cost $60 per hour, therefore this monopolist will: (w) continue to realize positive economic profi

Discover Q & A

Leading Solution Library

Avail More Than 1443733 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1943874
Asked

3,689

Active Tutors

1443733

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment