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★ѕραndavir ★ѕραndavir
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6 years ago
During the expansion phase of the business cycle, business firms become optimistic about their future earning capacity as do banks. Nominal interest rates rise during expansions. Investment lending could be expected to
A) rise if the change in future earnings is thought to be greater than the change in interest rates.
B) stay the same.
C) fall.
D) fall if the change in future earnings is thought to be greater than the change in interest rates.
Textbook 
Macroeconomics

Macroeconomics


Edition: 12th
Author:
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thecromthecrom
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6 years ago
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5 years ago
A good answer to a tough question
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