What effect would we expect in the market for loanable funds if some people discover a new business opportunity that requires investment?
A. Supply will shift right and demand will not change.
B. Demand will shift right and supply will not change.
C. Demand will shift left and supply will not change.
D. Supply will shift left and demand will not change.
Answer: B
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If the apartment owner can somehow see the effort of the each of the room mates and punishes with a loss of 5 to any room mate who doesn't clean, is that likely to lead to a more efficient outcome?
a. No because they would have to clean against their will b. Yes because now they would both get a utility of 3 c. No because neither of them like cleaning d. No because filth is good
Our trade balance in merchandise is ________ and our trade balance in services is __________.
A. positive; positive B. negative; negative C. negative; positive D. positive; negative
In practice, the size of the ________ is about 1.4.
A. APC B. natural rate of unemployment C. multiplier D. inflation rate
In Figure 15.2, if the money supply decreased from $200 billion to $100 billion, which of the following would be likely to occur?
A. The quantity of money demanded would increase. B. Aggregate demand would decrease. C. Aggregate supply would increase. D. The demand for money would increase.