The quantity of loanable funds demanded
A. is where the interest rate equals the MPP of investment.
B. is where the interest rate equals the MRP of investment.
C. is where the interest rate equals the discounted value of investment.
D. is where the interest rate makes equals the rental rate for marginal land.
Answer: B
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A change in the slope of a budget constraint indicates:
A) a change in the price of either good that causes a change in the opportunity cost. B) a change in the consumer's income. C) a change in the price of either good without a change in the opportunity cost. D) a change in the consumer's tastes and preferences.
When we look at real GDP since 1970 or so, we see that recessions are evenly spaced over the years.
a. true b. false
Considering the return an investor requires from a stock, what are the two components that make up that return? Briefly explain each of these components.
What will be an ideal response?
The income effect of a wage rate increase should lead to
A. a decrease in the quantity of labor supplied and a decrease in leisure. B. an increase in the quantity of labor supplied and an increase in leisure. C. an increase in the quantity of labor supplied and a decrease in leisure. D. a decrease in quantity of labor supplied and an increase in leisure.