In general, which of the following statements about the supply of capital is incorrect? O a. An increase in interest rate will cause households to save more and thus increase the quantity of capital supplied. O b. Holding all other things constant, when current income increases, the supply of capital will also increase. Oc. In general, an increase in expected future income of households will result in a reduction in the supply of financial capital. Od. There is a negative relationship between the interest rate in an economy and the quantity of capital supplied.

In general, which of the following statements about the supply of capital is incorrect? O a. An increase in interest rate will cause households to save more and thus increase the quantity of capital supplied. O b. Holding all other things constant, when current income increases, the supply of capital will also increase. Oc. In general, an increase in expected future income of households will result in a reduction in the supply of financial capital. Od. There is a negative relationship between the interest rate in an economy and the quantity of capital supplied.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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