Category: Stocks

A. Real interest rates rise and investment falls
B. Real interest rates rise and investment rises
C. Real interest rates fall and investment rises
D. Real interest rates fall and investment falls

A. A bond issued by a startup company
B. A government bond issued by the government of France.
C. A bond issued by a blue-chip company
D. An investment funds with portfolio of corporate bonds issued by blue chip companies

A. buyers and sellers
B. husbands and wives.
C. borrowers and lenders.
D. labor unions and firms

A. Saving is unchanged
B. There is an increased in saving and the economy should grow more quickly
C. There is a decrease in saving and the economy should grow more slowly
D. There is not enough information to determine what will happen to saving

A. Probability of default
B. Price-earnings ratio
C. dividend
D. tax treatment

A. Saving = Rs 300 investment = Rs 300
B. Saving = Rs 200 investment = Rs 100
C. Saving = Rs 100 investment = Rs 200
D. Saving = Rs 0 investment = Rs 0

A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment

A. none of these answers
B. investment + consumption expenditures
C. private saving + public saving
D. GDP government purchases

A. intermediation
B. equity finance
C. crowding out
D. the investment fund effect

A. the real interest rate should fall
B. the real interest rate should rise
C. the impact on the real interest rate is indeterminate
D. the real interest rate should not change