During the financial crisis in 2007 and 2008, financial institutions believed that default risks were higher. As a result, there was ________ in the supply of loanable funds and a ________ in the real interest rate
A) a decrease; fall
B) an increase; rise
C) an increase; fall
D) a decrease; rise
D
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Suppose we observe a substantial increase in the price of a good, and, at the same time, an increase in the quantity of the good demanded. What can we conclude?
A) The law of supply is untrue. B) Consumers haven't followed the law of demand. C) The demand curve has shifted to the right. D) The good is a luxury good.
Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country E? CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. $1,000 B. $4,500 C. $6,250 D. $1,500
Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
A. reduce its costs. B. charge higher prices. C. make demand more inelastic. D. earn a bigger profit.
The part of consumption that does NOT depend upon the level of disposable income is
A. autonomous consumption. B. savings. C. saving. D. average propensity to consume.