The supply curve for loanable funds would increase due to a(n)
A) increase in wealth.
B) increase in expected inflation.
C) decrease in the liquidity of bonds relative to other assets.
D) increase in the information costs of bonds relative to other assets.
A
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Statistical analysis reveals that the long-run money velocity (for euro-area M3, which is equivalent to U.S. M2):
A. is much more stable in the U.S. than in the euro area. B. is unstable in the euro similar to the instability that exists in the U.S. C. has increased in the euro area since 1980. D. is more stable in the euro area than in the U.S.
The Sherman Act was the first established antitrust law.
Answer the following statement true (T) or false (F)
When the supply curve shifts to the left and there is no change in demand:
A. the equilibrium price will rise. B. the market cannot reestablish an equilibrium. C. the equilibrium price will fall. D. the equilibrium quantity will rise.
Which statement is true?
A. Joseph Schumpeter said, "risk bearing is no part of the entrepreneurial function." B. Benjamin Franklin said, "It is better to borrow than to lend." C. Aristotle said, "the fair rate of interest is exactly what the market will bear." D. David Ricardo said, "the landlord's return, rent, should be taxed away by the government."