Which of the following statements about the loanable funds market is correct?
a) The actions of investors affect the supply curve in the market.
b) The actions of investors affect the demand curve in the market.
c) The actions of savers affect the demand curve in the market.
d) The actions of investors affect both the demand curve and the supply curve in the market.
Ans: b) The actions of investors affect the demand curve in the market.
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When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium. B. there is neither excess supply nor excess demand. C. the economic motives of sellers and buyers will move the market to its equilibrium. D. government intervention is required to achieve equilibrium.
Income elasticity of demand is greater than zero for all of the following except
a. restaurant meals b. beer c. owner-occupied housing d. food e. rental housing
For a person in a desert community, as compared to being in a non-desert community, water would have
a. lower marginal utility and lower total utility b. lower marginal utility and higher total utility c. higher marginal utility and lower total utility d. higher marginal utility and higher total utility e. zero marginal utility, but higher total utility
Many economists, both liberal and conservative, were critical of much of the early environmental legislation. An important reason for the economists' critique was that economists:
A. trusted the market to solve all problems of resource use. B. worried about fairness of regulations more than noneconomists did. C. worried that the costs sometimes were greater than the benefits. D. thought the goals of the legislation were wrong.