Budget deficits reduce national saving causing real interest rates
A: and investment to fall
B: and investrment to rise
C: to rise and investment to fall
D: None of the above
A: and investment to fall
B: and investrment to rise
C: to rise and investment to fall
D: None of the above
举一反三
- Call provisions will be exercised when interest rates _________ and bond values _________. A: rise; rise B: fall; rise C: rise; fall D: fall; fall
- When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________. A: demand; rise B: demand; fall C: supply; fall D: supply; rise
- In actual practice, short-term interest rates are just as likely to fall as to rise; this is the major shortcoming of the ________
- When the interest rate on a bond is below the equilibrium interest rate, there is excess _________ in the bond market and the interest rate will _________ A: demand; rise B: demand; fall C: supply; fall D: supply; rise
- In which of the following situations must national saving rise? A: domestic investment increases and net foreign investment decreases. B: domestic investment decreases and net foreign investment increases. C: both domestic investment and net foreign investment increase. D: net exports decrease and domestic investment is unchanged.