In the loanable funds market, the price that borrowers must pay for earlier availability is the
a. inflation rate.
b. wage rate.
c. interest rate.
d. exchange rate.
C
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One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices. B) raise prices. C) price discriminate. D) become more competitive. E) produce where price equals average total cost.
In Brazil, the income elasticity of demand for dairy is 0.7 and for fruit and vegetables it is 0.5. These elasticities mean that if the income of Brazilians decreases, they will purchase ________ dairy and ________ fruits and vegetables
A) less; less B) more; more C) more; less D) less; more
Which of the following statements apply to international banking facilities (IBFs)?
a. IBFs are subject to U.S. interest rate regulations. b. IBFs are located all over the world. c. IBFs do not require FDIC deposit insurance premiums. d. IBFs offer a higher interest rate spread than normal U.S. banks. e. IBFs allow European residents to participate in the American stock exchanges.
If the marginal propensity to save is 0.3, the size of the multiplier is:
A. 0.7. B. 3.3. C. 1.3. D. 2.3.