Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the supply of loanable funds
B) an increase in the quantity of loanable funds demanded
C) an increase in the quantity of loanable funds supplied
D) an increase in the demand for loanable funds
D
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?Consider a market for cookies that is initially in equilibrium. For a given upward-sloping supply curve, the equilibrium price and equilibrium quantity of cookies is most likely to decline when:
A) the price of milk, a complement, increases. B) consumer income increases. C) the number of consumers increases. D) the price of coffee, a complement, decreases. E) price of crackers, a substitute, increases.
George has a $600 annual entertainment budget that he uses to buy trips to the movies and dinners at local restaurants. The figure above shows indifference curves and budget lines for these two goods. The price of a movie is $15
a) Along budget line BL1, what is the price of a dinner? b) What combination of dinners and movies will George select along budget line BL1? c) Budget line BL2 represents a change in the price of dinners from that along BL1. What is the new price of dinners along this budget line? d) What combination of dinners and movies will George select along budget line BL2? e) Use the information in this problem to give two points on George's demand curve for dinners.
The welfare cost of taxation _____
a. occurs because individuals try to avoid the tax to some degree b. is not the same thing as the excess burden of taxation c. occurs because individuals refuse to pay the tax d. cannot, in theory, be calculated
When the U.S. government purchases capital equipment, such as a computer, these expenditures are part of investment in GDP
a. True b. False Indicate whether the statement is true or false