Other things the same, if the government decreases transfer payments, then
a. both the interest rate and the equilibrium quantity of loanable funds fall.
b. both the interest rate and the equilibrium quantity of loanable funds rise.
c. the interest rate rises and the equilibrium quantity of loanable funds falls.
d. the interest rate falls and the equilibrium quantity of loanable funds rises.
d
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The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. How many pure-strategy Nash equilibria are in this game?
A) 0 B) 1 C) 2 D) 3
If the more-is-better principle holds, then indifference curves must:
A. be positively-sloped. B. be negatively-sloped. C. be thin. D. be concave.
The more elastic the supply of a product, the more the actual burden of a tax on the product will:
A. fall on sellers. B. fall on buyers. C. fall equally on both buyers and sellers. D. create a smaller deadweight loss (or excess burden).
The demand curve faced by a monopolistically competitive firms is
A) horizontal. B) vertical. C) downward sloping. D) unitary elastic.