A fall in the real interest rate
A) results in a movement along the demand for loanable funds curve.
B) shifts the demand for loanable funds curve rightward.
C) shifts the demand for loanable funds curve leftward.
D) has no effect on the demand for loanable funds curve
A
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The referendum version of the median voter model concludes that _____
a. by decreasing output slowly, the median voter will adjust her preferences to those of the ballot organizer b. by increasing output slowly, the median voter will adjust her preferences to those of the ballot organizer c. the outcome preferred by the median voter will be chosen by unanimity d. the outcome preferred by the median voter will be chosen by majority rule
Suppose you solve a utility maximization problem, and the solution value of the Lagrange multiplier equals zero. What does this outcome imply about the problem solution?
A) You must have made an error while solving the problem. B) The budget constraint is not binding, and the constrained solution is equal to the solution to the unconstrained utility maximization problem. C) The optimal utility level for the consumer equals zero. D) The consumer's demand curve is upward sloping.
The Great Stagflation of 1973-1980 was characterized by a high rate of inflation combined with the recession or stagnation of economic output that occurred during this time period. A major cause was the increase in oil prices
Indicate whether the statement is true or false
If a central bank were required to target inflation at zero, then when there was a negative aggregate supply shock the central bank
a. would have to increase the money supply. This would move unemployment closer to the natural rate. b. would have to increase the money supply. This would move unemployment further from the natural rate. c. would have to decrease the money supply. This would move unemployment closer to the natural rate. d. would have to decrease the money supply. This would move unemployment further from the natural rate.