If there is a shortage in the market for loanable funds, what happens to desired saving and desired investment as the interest rate moves to its equilibrium value?
a. desired saving and desired investment both fall
b. desired saving and desired investment both rise
c. desired saving falls and desired investment rises
d. desired saving rises and desired investment falls
d
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Which of the following statements is true of the short run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face a downward-sloping supply curve. C) Non-identical firms face a downward-sloping supply curve. D) Non-identical firms cannot enjoy positive economic profits.
Happy Cleaners is a monopoly and cleans 500 homes a month. If Sparkle Cleaners enters the market and a Chamberlin oligopoly is formed, Sparkle Cleaners will clean ________ homes a month in equilibrium.
A) 375 B) 250 C) 200 D) 500
If you observed the wage rate decreasing while employment increased, which of the following would be a possible explanation?
a. A decrease in labor demand b. A decrease in labor demand coupled with a decrease in labor supply c. An increase in labor supply d. A decrease in labor supply e. It is not possible for the wage rate to decrease while employment is increasing
A market
a. may be an organized exchange. b. refers to a set of sellers and buyers whose actions affect a commodity's price. c. is that area in which buyers and sellers compete to affect a product price. d. All of the above are correct.