7. Which of the following is likely to cause a decrease in the equilibrium U.S. interest...

 

Transcribed Image Text:

7. Which of the following is likely to cause a decrease in the equilibrium U.S. interest rate, other things being equal? a. a decrease in savings by foreign savers b. an increase in inflation C. pessimistic economic projections that cause businesses to reduce expansion plans d. a decrease in savings by U.S. households 8. If the real interest rate was negative for a period of time, then a. inflation is expected to exceed the nominal interest rate in the future. b. inflation is expected to be less than the nominal interest rate in the future. actual inflation was less than the nominal interest rate. d. actual inflation was greater than the nominal interest rate. 9. If the economy weakens, there is money supply there is affected). pressure on interest rates. If the Federal Reserve increases the pressure on interest rates (assume that inflationary expectations are not a. upward; upward b. upward; downward C. downward; upward d. downward; downward 10. Assume that foreign investors who have invested in U.S. securities decide to increase their holdings of U.S. securities. This should cause the supply of loanable funds in the United States to and should place pressure on U.S. interest rates. a. decrease; upward decrease; downward increase; downward increase; upward PSOE POCE POUE b. d. 7. Which of the following is likely to cause a decrease in the equilibrium U.S. interest rate, other things being equal? a. a decrease in savings by foreign savers b. an increase in inflation C. pessimistic economic projections that cause businesses to reduce expansion plans d. a decrease in savings by U.S. households 8. If the real interest rate was negative for a period of time, then a. inflation is expected to exceed the nominal interest rate in the future. b. inflation is expected to be less than the nominal interest rate in the future. actual inflation was less than the nominal interest rate. d. actual inflation was greater than the nominal interest rate. 9. If the economy weakens, there is money supply there is affected). pressure on interest rates. If the Federal Reserve increases the pressure on interest rates (assume that inflationary expectations are not a. upward; upward b. upward; downward C. downward; upward d. downward; downward 10. Assume that foreign investors who have invested in U.S. securities decide to increase their holdings of U.S. securities. This should cause the supply of loanable funds in the United States to and should place pressure on U.S. interest rates. a. decrease; upward decrease; downward increase; downward increase; upward PSOE POCE POUE b. d.

Answer rating: 100% (QA)

Answer 7 c Pessimistic economic projections that cause businesses to reduce expansion plans this option validates the most as such projections are mad... View the full answer