If investors’ expected future incomes incr

问题单项选择题

If investors’ expected future incomes increase, all else constant, interest rates will:（）

A. fall, while an increase in the demand for financial capital will cause rates to rise.

B. rise, while an increase in the demand for financial capital will cause rates to fall.

C. rise, while an increase in the demand for financial capital will also cause rates to rise.

答案

参考答案：C

解析：

Increases in expected future incomes will decrease savings, which will decrease the supply of financial capita/and increase the equilibrium interest rate, other things equal. If the demand for financial capital rises, interest rates also rise; if the demand for financial capital falls, interest rates will fall.