Ask Question
BusinessBusiness
5 December, 10:19

When an economy is experiencing an economic boom and operating beyond its long-run capacity, Group of answer choices strong demand for investment funds will push interest rates upward. weak demand for resources will push the prices of resources downward. weak demand for investment funds will cause the real interest rate to decline. the unemployment rate will be greater than its natural rate.

+5
Answers (1)
  1. 5 December, 10:45
    0
    strong demand for investment funds will push interest rates upward.

    Explanation:

    Since the economy is booming, the demand for investment funds will be very large, even if the economy is not operating beyond its long run capacity. Just the mere fact that the economy is growing will result in an increase in the demand for money, and the price of money is interest. If the quantity demanded increases, then the price of money (interest rates) will also increase. This affects both the demand for investment funds and credit for consumption.

    On the other hand, if the economy is declining, the demand for money decreases, resulting in lower interest rates.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When an economy is experiencing an economic boom and operating beyond its long-run capacity, Group of answer choices strong demand for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A sports team's owner is given a videotape of his star player physically striking his girlfriend in an elevator, causing her severe injuries. The player has not been accused of any crime.
Answers (1)
In what order are the following financial statements prepared: (1) Balance sheet, (2) income statement, and (3) statement of stockholders' equity? A. 1, 2, 3. B. 3, 2, 1. C. 1, 3, 2. D. 2, 3, 1.
Answers (1)
Carrie wants to open a boat shop right next to the beach. What kind of utility is she implementing? A. Possession utility B. Place utility C. Form utility D. Time utility
Answers (1)
Kevin is a top-level manager at an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources.
Answers (1)
In a small open economy, if exports equal $20 billion, imports equal $30 billion, and domestic national saving equals $25 billion, then net capital outflow equals: A) - $25 billion. B) - $10 billion. C) $10 billion. D) $25 billion.
Answers (1)
New Questions in Business
Sunset Foods relies on a highly centralized functional structure to ensure consistency in the quality and taste of its products and to drive down costs via process innovations.
Answers (1)
Ignoring issues of the statute of frauds, is there a contract for the sale of vinny's celica?
Answers (1)
The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.
Answers (1)
Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially.
Answers (1)
One day a supplier supplied 300 units of a good at $20 per unit. A week later the same supplier supplied the same number of units at $10 per unit. Based on this evidence the supplier has experienced: a a decrease in quantity supplied.
Answers (2)
Home » Business » When an economy is experiencing an economic boom and operating beyond its long-run capacity, Group of answer choices strong demand for investment funds will push interest rates upward.
Sign Up Forgot Password?