Suppose the real interest rate increases from 4 percent to 6 percent. As a result,
A) governments decrease their demand for loanable funds.
B) firms increase their demand for loanable funds.
C) governments increase the supply of loanable funds.
D) firms decrease the quantity demanded of loanable funds.
E) governments decrease the quantity supplied of loanable funds.
D
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According to the BEA, in the second quarter of 2012 purchases of new residential structures rose by 8.9 percent. Using the expenditure approach, this change increases
A) gross private domestic investment. B) government expenditure on goods and services. C) net exports of goods and services. D) personal consumption expenditures.
The U.S. government pays an economist at the U.S. Department of Commerce $100,000 in salary in 2013 . The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct?
a. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government purchases. b. The 2013 payment is included in 2013 GDP as government purchases, but the 2014 payment is not included in 2014 GDP. c. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is included in 2014 GDP as government transfer payments. d. The 2013 payment is included in 2013 GDP as government purchases, and the 2014 payment is allocated to previous years' GDP according to the amount of work performed by the economist each year.
Suppose the supply of dollars decreased from S2 to S1 in Figure 36.3. As a result of this change,
A. A trade deficit will be created in Switzerland. B. Swiss chocolate imports to the United States will be lower-priced in dollars. C. The Swiss franc will gain value worldwide. D. U.S. computer exports to Switzerland will be lower-priced in dollars.
A nation whose labor market is highly integrated with other nations in a currency union is more ______ to join because ______.
A) unlikely; workers would suffer real wage declines if they have competition from foreign workers B) unlikely; firms would find it expensive to hire workers if they have to pay in the common currency C) likely; labor market integration means that when there are asymmetric demand shocks the adjustment can be eased by migration of workers D) likely; labor force rules and policies can be harmonized more easily