A decrease in the real interest rate leads to a ________ the demand for loanable funds curve, and a decrease in the expected profit leads to a ________ the demand for loanable funds curve
A) rightward shift in; leftward shift in
B) movement down along; movement up along
C) rightward shift in; movement up along
D) movement down along; leftward shift in
D
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The most commonly traded product (by value) in recent years has been
A) petroluem. B) wheat. C) televisions, stereos, and VCRs. D) automobiles.
Adverse selection is a problem that arises:
A. before the parties have entered into an agreement. B. either before or after the parties have entered into an agreement. C. rarely in any market. D. after the parties have voluntarily entered into an agreement.
The inflation rates in the 7 major industrialized countries
a) have fallen steadily since 1970 b) reached a peak in the mid-1990s c) have been historically high in all countries except the U.S. during the 1990s d) have been nearly zero since 1970, because prices have been stable e) were higher in the mid- and late 1970s than at any time since
In the short run
A. if current firms are earning a profit, new firms will enter the industry. B. firms act to minimize losses or maximize profits. C. all firms that earn a loss will shut down. D. All of the above are correct.