The supply of loanable funds slopes
a. upward because an increase in the interest rate induces people to save more.
b. downward because an increase in the interest rate induces people to save less.
c. downward because an increase in the interest rate induces people to invest less.
d. upward because an increase in the interest rate induces people to invest more.
a
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Which of the following correctly describes the relationship between productivity growth, unemployment, and the economy's production possibilities frontier?
A) An increase in productivity moves the economy from inside the production possibilities set to its frontier. B) An increase in productivity shifts the economy from the production possibilities frontier to a point outside the production possibilities set. C) An increase in unemployment shifts the economy further inside its production possibilities set. D) An increase in unemployment shifts the economy from a point outside the production set back to the production possibilities frontier. E) A reduction in unemployment shifts the entire production possibilities frontier outward.
In goods markets ________ and in factor markets ________
A) households sell to firms; firms sell to households B) firms sell to households; households sell to firms C) households sell to firms; households sell to firms D) firms sell to households; firms sell to households
Which of the following doesn’t characterize the properties of a dollar:
A. changes in value over time. B. can reflect the cost of living in terms of the goods it can purchase. C. has no worth itself, but represents goods we can buy with it. D. it has a fixed value that doesn’t change over time.
The market-demand curve for a product in a perfectly competitive market:
a. is horizontal. b. is downward sloping. c. is vertical. d. has elasticity equal to 1. e. is positively sloped.