If the real interest rate increases from 3 percent to 5 percent
A) the nominal interest rate will also increase.
B) the demand for loanable funds curve will shift rightward.
C) there will be a movement up along the demand for loanable funds curve.
D) the supply of loanable funds curve will shift rightward.
C
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A common characteristic in oligopolistic markets is
A. consideration of rivals’ reactions. B. standardized products. C. high profits. D. unused capacity.
Commercial banks are financial intermediaries, as are ________
A) household savers B) state and local governments C) insurance companies D) organized exchanges
Price ceilings are imposed if the government believes
a. the market fails to create an equilibrium price b. the equilibrium price is too low c. an excess supply of the good exists or will result in the near future d. the equilibrium price is too high e. quantity demanded is less than quantity supplied
Define international trade and international financial transactions. Give an example of each one.
What will be an ideal response?