Suppose that expected profit decreases. This change means
A) the demand curve for loanable funds shifts leftward and the real interest rate falls.
B) the supply curve for loanable funds shifts rightward and the nominal interest rate rises.
C) there is a movement down along the demand curve for loanable funds.
D) the real interest rate rises as saving increases.
A
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Figure 7-13
Figure 7-13 shows the average total cost curves of four firms that produce milk. Some of the dairies are more productive. AR = P is the long-run price of milk. How many of these dairies will remain in the industry in the long run?
A. All of them B. Only 2 C. Only 3 D. Cannot determine with information given
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A. government borrowings = government spending+ transfers - taxes and user charges. B. government spending = government borrowing - transfers - taxes and user charges C. government spending = transfers - taxes and user charges - government borrowing. D. government borrowings = taxes and user charges + government spending - transfers