The figure above shows the loanable funds market. At an interest rate of
A) 4 percent, the quantity supplied of loanable funds equals $18 trillion.
B) 8 percent, the quantity demanded of loanable funds exceeds the quantity supplied.
C) 6 percent, the quantity demanded of loanable funds equals $14 trillion.
D) 8 percent, there is a surplus of loanable funds.
E) 4 percent, there is a surplus of loanable funds.
D
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The Federal Reserve System is divided into:
a. 2 districts. b. 12 districts. c. 26 districts. d. 50 districts. e. 1 district.
Laws that are used to prevent firms from colluding and setting high prices are called
A) anti-trust laws. B) price ceiling laws. C) anti-cartel laws. D) anti-competition policies.
What must occur for a good to violate the Law of Demand?
A. The good must be normal and the income effect must be larger than the substitution effect. B. The good must be normal and the substitution effect must be larger than the income effect. C. The good must be inferior and the income effect must be larger than the substitution effect. D. The good must be inferior and the substitution effect must be larger than the income effect.
Recessions tend to be ________ by ________ the rate of inflation.
A. followed; a decrease in B. neither preceded nor followed; any change in C. preceded; a decrease in the stability of D. followed; an increase in