Other things the same, if the interest rate falls, then
a. firms will want to borrow more, which increases the quantity of loanable funds demanded.
b. firms will want to borrow less, which decreases the quantity of loanable funds demanded.
c. firms will want to borrow more, which increase the quantity of loanable funds supplied.
d. firms will want to borrow less, which decreases the quantity of loanable funds supplied.
a
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Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve
A) has a negative slope. B) has a positive slope. C) is at its minimum point. D) is at its maximum point.
Lack of information to consumers on prices is a problem of
a. government failure b. externalities c. exploitation d. market failure e. none of the above
Assume that autonomous consumption equals $200 and that the mpc equals 0.8. If disposable income equals $1000, then total consumption equals
A) $80. B) $200. C) $800. D) $1000.
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
a. Huge current account deficit b. Currency pegged to the dollar c. Floating rate policy d. Adherence to the old gold standard