Changes in interest rates produce substitution-income effect

Assignment Help Business Economics

Reference no: EM13837162

Because changes in interest rates produce substitution and income effects that ________, we can't be sure what happens to _______ if interest rates change.

A) pull in the same direction; financial investing

B) pull in the opposite direction; saving

C) cancel out each other; saving

D) are so small; capital accumulation

Reference no: EM13837162

Questions Cloud

Changes in equilibrium price-quantity you expect for market : Explain the changes in equilibrium price and quantity you expect for that market. A graph is not required; however, it is helpful and illustrative that you fully comprehend this week’s material.

Oil and coal are renewable natural resources : A renewable natural resource is one that can't be used without reducing the stock of the resource for subsequent use. An exhaustible natural resource is often managed in a manner that makes some of it available for future use. Oil and coal are renewa..

Exploring the future of psychedelic drug : Article- Transcending the Medical Frontiers: Exploring the Future of Psychedelic Drug Research by David Jay B. purpose of the article

An increase in the supply of loanable funds : An increase in the supply of loanable funds will lead to a(n) _______ in the interest rate and a(n) _______ in the quantity of capital demanded.

Changes in interest rates produce substitution-income effect : Because changes in interest rates produce substitution and income effects that ________, we can't be sure what happens to _______ if interest rates change.

Events and market changes were analysts : What events and market changes were analysts unable to foresee in 2002, and what has been their impact on prospective and risk up to the present time? what continuing impact do you think that these events and market changes will have on the indust..

About microeconomics problem currently in the news : Find two articles about a microeconomics problem currently in the news from either a newspaper or news (including business) magazine. Write a short analytical paper that compares/contrasts the problems or issues.

Determine feasibility of an erp system : Determine feasibility of an ERP system

Change in the law is equivalent to a change in technology : You are tasked with manufacturing 12 commercial aircraft per month. A new OSHA rule requires that welders be given paid 2 hour break for every 2 hours of work to prevent carpel tunnel syndrome. Using the isoquant isocost graph as an aid, explain what..

User Account

All Pages