An increase in the demand for loanable funds may be caused by a(n):
A. Increase in the availability of loanable funds
B. Increase in consumers' willingness to save
C. Increase in business borrowing
D. Decrease in the interest rate
C. Increase in business borrowing
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Fixed costs are ________ in a natural monopoly, so average total cost ________ as output increases
A) large; increases B) large; decreases C) small; increases D) small; decreases E) nonexistent; decreases
The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
When the price of a pound of apples is $1.00, 7500 pounds of apples are demanded. When the price of a pound of apples decreases to $0.80, 10,000 pounds of apples are demanded. In this price range the demand for apples is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
If Japan has a trade surplus and the United States has a trade deficit, the trade gap could be eliminated by:
A. expansionary monetary policy in both Japan and the United States. B. expansionary monetary policy in Japan or contractionary monetary policy in the United States. C. contractionary monetary policy in both Japan and the United States. D. contractionary monetary policy in Japan or expansionary monetary policy in the United States.